The Lemoine law, how to change your loan insurance from June 2022?

The Lemoine law, published on February 28, 2022, will come into force in June 2022. This legislation will allow competition between banks and different insurers and will replace two texts, the Hamon law (2014) and the Bourquin amendment (2018).

At the moment

The Hamon law and the Bourquin amendment have clearly simplified the procedures for changing loan insurance.

Articulation of the law concerning the borrowers' insurance

The problem with these various measures is that banks often used notice periods and delayed their response in order to miss the anniversary date.

A radical change beneficial to the consumer

The Lemoine law will simplify the steps of the consumer.

From now on, borrower insurance attached to a mortgage can be terminated at any time during the contract, without the “anniversary date” condition.

This measure will come into force on June 1, 2022 for contracts signed after this date and on September 1 for contracts already in force on June 1.

This measure will allow the client to find a better insurance from the day after the loan offer. In general, the group insurances proposed by the banks remain significantly higher.

Attention: there is however a condition to which it is necessary to pay attention, the banks have the possibility of refusing this change if the insurance you wish to subscribe does not offer equivalent guarantees to the current one. In this case it will be necessary to find a better insurance.

Procedure: how to change insurance in practice?

1st step : you have to look for a new insurance at a lower cost than the current one but with, at least, an equivalent coverage.

2nd step : once you have chosen the insurance, a letter of cancellation must be sent to your bank with a copy of the quote for the insurance you wish to choose. This letter must be sent by registered mail.

3rd step : the bank has only 20 days to respond. It can accept or refuse the cancellation. However, if it refuses your cancellation, it must justify itself, under penalty of a fine of 3,000 euros.

You wish to change your loan insurance ? Our wealth management advisors can find the right insurance for your needs and also take the necessary steps for you.

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