Supported by the member of the group Agir Ensemble, the Lemoine law saw many twists and turns before it came into force only on 1eh June 2022 for current contracts and then on 1eh September of the same year for new contracts. Its aim: to provide fairer, simpler and more transparent access to the borrower insurance market. Back to this law that is shaking up the loan insurance market!
The Genesis of Lemoine Law
Patricia Lemoine introduced a first bill on September 22, 2021, then a second version on October 29, 2021. After several discussions and revisions, the Lemoine Law was finally adopted on February 17, 2022, and announced in the Official Journal of the European Union on February 28, 2022 This new law, which succeeds the Lagarde, Hamon and Bourquin laws, aims to make it easier for borrowers to compete, as they are no longer required to respect a specific date to terminate their contract. With the Lemoine Act, borrowers can change insurance at any time!
The main measures of the Lemoine Act
For fairer, simpler and more transparent access to the loan insurance market, the Lemoine Act introduced 4 main measures.
Removal of the health questionnaire
The health questionnaire, which serves as the basis for calculating the rate of borrower’s insurance is no longer mandatory if you meet these two conditions :
- the insured amount is less than €200,000 per borrower;
- the borrower repays his loan before reaching the age of 60.
Termination at any time
Thanks to the Lemoine Law, the borrower has option to change the contract at any time. There is therefore no reason to wait for the anniversary date of the contract if you have already taken out your borrower’s insurance and you have exceeded the first repayment year. The Lemoine Law makes it possible to overcome these conditions and allows borrowers to make another offer, provided that the principle of equivalence of guarantees is observed.
The extended right to be forgotten and its reduced period
That law Lemoine has reduced the period of the right to be forgotten from 10 to 5 years. Specifically, if the borrower suffered from cancer for which he has been cured for more than 5 years, he is no longer obliged to disclose this in his loan insurance. This right to be forgotten has been extended to include former hepatitis C patients.
For more transparency, the Lemoine Act requires both the insurance company and the lending institution to notify the borrower of the costs of coverage over 8 years. So should professionals remind the borrower of their right to terminate each year.
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