Borrower insurance represents a significant portion of the total cost of a mortgage, often between 25% and 40%. Until recently, borrowers were largely captive to the group insurance offered by their bank. The Lemoine Law, which came into effect in 2022, changes the game by establishing a true right to competition.
1. What is the Lemoine Law?
Law No. 2022-270 of February 28, 2022, known as the Lemoine Law (named after MP Patricia Lemoine), aims to facilitate access to credit and strengthen borrower protection. It introduces three major measures:
- Cancellation at any time: Borrowers can cancel their loan insurance whenever they wish
- Elimination of medical questionnaire: Under certain conditions, no need to declare your health status
- Extended right to be forgotten: Former cancer patients can stop declaring their condition after 5 years
Context: Before the Lemoine Law, borrowers could only change insurance during the first year (Hamon Law) or on each anniversary date (Bourquin amendment). These cancellation windows were restrictive and not well known to the general public.
2. Cancellation at Any Time
This is the flagship measure of the Lemoine Law: you can now cancel your borrower insurance at any time, without waiting for a specific date and without fees.
Implementation Timeline
| Contract Type | Effective Date |
|---|---|
| New contracts (offer signed after June 1, 2022) | June 1, 2022 |
| Existing contracts (offer signed before June 1, 2022) | September 1, 2022 |
Conditions to Meet
- The new contract must have equivalent guarantees to those required by the bank
- The substitution request must be sent to both the current insurer and the bank
- The bank has 10 business days to respond
Good to know: There is no longer a notice period to respect. Once you have found new insurance with equivalent guarantees, you can request substitution immediately.
3. Elimination of Medical Questionnaire
The Lemoine Law eliminates the medical questionnaire for certain mortgage loans. This is a major advancement for people who have or have had health issues.
Cumulative Conditions
Loan Amount
Insured balance ≤ €200,000 per person
Borrower's Age
Loan fully repaid before age 60
Example: A 35-year-old borrower taking out a €180,000 loan over 20 years (repaid at 55) will not have to complete a medical questionnaire.
Watch out for multiple loans
The €200,000 threshold applies to the total insured balance across all loans. If you already have a mortgage in progress, the combined amounts must not exceed €200,000 to benefit from the questionnaire elimination.
4. Extended Right to be Forgotten
The right to be forgotten allows former patients not to declare their past condition when taking out borrower insurance. The Lemoine Law has significantly strengthened this right.
Evolution of the Right to be Forgotten
| Condition | Before Lemoine Law | Since Lemoine Law |
|---|---|---|
| Cancer (adult) | 10 years after recovery | 5 years after recovery |
| Cancer (before age 21) | 5 years after recovery | 5 years after recovery |
| Hepatitis C | Not covered | 5 years after recovery |
5. How to Change Borrower Insurance
Step-by-Step Process
Get the Standardized Information Sheet (FSI)
Your bank must provide this document detailing the minimum required guarantees.
Compare insurance offers
Request multiple quotes, verifying that guarantees are at least equivalent.
Subscribe to the new contract
Sign the chosen contract and obtain the insurance certificate.
Send the substitution request
Send your bank the new contract and a substitution request letter.
Wait for the bank's response
The bank has 10 business days to accept or refuse (with written justification).
6. Potential Savings
Changing borrower insurance can generate substantial savings. Bank group insurance is generally more expensive because it pools risks across all profiles, while individual insurance (delegation) can offer personalized rates.
Savings Examples
| Profile | Loan | Potential Savings |
|---|---|---|
| Couple, 30, non-smokers | €250,000 over 25 years | €15,000 to €20,000 |
| Single, 40, smoker | €200,000 over 20 years | €8,000 to €12,000 |
| Couple, 50 | €150,000 over 15 years | €5,000 to €10,000 |
7. Bank Obligations
The Lemoine Law imposes new obligations on banks to ensure the effectiveness of the right to cancel.
Mandatory Annual Information
Each year, the bank must inform borrowers of their right to cancel their insurance. This information must mention:
- The insurance contract expiry date
- The right to cancel at any time
- Cancellation procedures
- The cost of insurance over 8 years
Response Time
The bank has 10 business days to respond to a substitution request. In case of refusal, it must justify its decision in writing and in acomprehensive manner.
8. Frequently Asked Questions
What is the Lemoine Law?
When can I change borrower insurance under the Lemoine Law?
How much can I save by changing borrower insurance?
Can the bank refuse my insurance change?
What is the right to be forgotten?
Sources
- • Légifrance - Law No. 2022-270 of February 28, 2022: legifrance.gouv.fr
- • Service-Public.fr - Borrower Insurance: service-public.fr
- • ACPR - Prudential Supervision Authority: acpr.banque-france.fr
- • AERAS Convention: aeras-infos.fr
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Disclaimer: The information in this article is provided for informational purposes only and does not constitute legal or financial advice. Conditions and rates may vary by insurer and your personal situation. We recommend consulting multiple offers and verifying guarantees before making any decision.