Borrower insurance: the possibility of terminating at any time is rejected by the Senate


And two. This Wednesday, January 26, the Senate, for the second time in three years, refused to introduce the possibility for a borrower to terminate his loan insurance contract at any time. Already largely amended in the Economic Affairs Committee, the bill of the deputy Patricia Lemoine – adopted in the National Assembly in November – is thus distorted, since amputated from its founding article.

Recalling that “25% of the insurance taken out” does not come from the group contracts of the banks, the parliamentarians of the upper assembly have reinforced the current system, deemed “balanced” and “satisfactory”. It allows all households to terminate their insurance on each anniversary date of the contract, but also at any time during the first year of subscription. They can also choose to untie their credit from the start, namely to choose an insurance organization different from the lending bank. “Termination at any time would likely lead to the continuation, if not the acceleration, of the sharp increase in prices for profiles presenting a higher level of risk, contrary to the principle of pooling allowing all categories of the population to access the property”, advanced on his amendment the senator Daniel Gremillet, rapporteur (LR) of the bill.

“The lobbying work of the French Banking Federation worked, regretted after the vote of the commission the deputy Patricia Lemoine, at the origin of the text. Behind this refusal, I observe a political posture to make no gift to the majority who had supported my proposal. These decisions are made to the detriment of households”, continues the elected representative of the Agir movement.

The end of the health questionnaire when subscribing

Important measure incorporated by the senators, the new version of the text acts the abolition of the health questionnaire for mortgages of less than 200,000 euros coming to an end before the borrower turns 65. Required by banks and insurance companies, this questionnaire aims to assess the risk carried by certain customers, whether they are elderly, victims of cancer or diabetes, for example. The latter must then pay very heavy premiums which make their insurance rates prohibitive. “They pride themselves on the abolition of the questionnaire but by removing this questionnaire, the insurer will then make the risk bear on all of its customers and will therefore increase its contributions in a general way”, had regretted Patricia Lemoine at the end. of the vote of the committee. The senatorial right prefers to speak of “solidarity” for the most disadvantaged borrowers. Measures have also come to reinforce the obligations of information of the policyholders on their current rights.

The puzzle of the legislative calendar

Beyond the content of the text, it is also the form that could pose a problem. The presidential election requires parliamentarians to stop their work as of February 28. No committee meeting or public session may be held after this date. However, the holding of the joint committee – the text is subject to an accelerated procedure – should take place in early February. If the latter does not lead to a consensus between deputies and senators, the text will therefore remain around three weeks to make a final return trip between the two chambers. A real headache. “It’s possible, but very difficult”, acknowledges Patricia Lemoine. Daniel Gremillet is more optimistic: “Even if the joint joint committee does not find an agreement, which is not certain, the government has all the necessary latitude to include this text again on the legislative calendar”

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