Insurance Broker for Professionals and Individuals, specialized in loan insurance – JEAN-FRANÇOIS OBER
25 May 202004 68 22 14 63
On January 12, 2018, the Constitutional Council finally confirmed that the possibility of annual termination of loan insurance, including for contracts in progress, was not unconstitutional. From now on, all borrowers who have taken out a personal mortgage can, since January 1, 2018, request the termination of their insurance contract (or membership of the group contract, in the case of group insurance).
Much awaited by insurers, confirmation of this ability suggests optimistic prospects for the borrower’s market, hitherto monopolized by bank contracts.
What are the steps to take?
The customer can freely inquire about the different offers available on the market. He must ensure that the new contract selected has a level of guarantees equivalent to the previous contract.
He must send his request for substitution by registered letter with acknowledgment of receipt to the lending institution, attaching the General and Special Conditions of the new contract. The bank has 10 working days from receipt of this request to decide.
If the bank gives its agreement, the customer can then ask the former insurer to terminate his previous contract (without forgetting the bank’s agreement), also by registered letter with acknowledgment of receipt, sent at least two months before the contract expiration date. On this last point, arbitration is awaited on the part of the CCSF to determine which date must precisely be chosen, depending on the situation.
This termination will take effect either 10 days after receipt of the termination request, or on the effective date of the new contract, if it is later.
The loan contract will be the subject of an amendment specifying the new annual effective annual rate. The lender may not charge additional fees for the issuance of this endorsement.
In the event of a refusal to replace the contract by the bank, it must be justified.
Insurance Broker for Professionals and Individuals, specialized in:
– Borrower Insurance
– Savings (private and professional)
– Financing Solution
04 68 22 14 63