borrow with an aggravated health risk

By Julien Trellu May 24, 2022
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What is the AERAS agreement?

Signed on July 6, 2006, the AERAS convention has been revised several times since its implementation. The purpose of this agreement is to promote access to borrower insurance for people whose state of health does not allow them to have standard insurance cover, that is to say insurance without exclusion of guarantees or a rate increase.

The AERAS convention obliges the insurer to apply :

But this AERAS agreement does not oblige the insurer to accept your request. The AERAS agreement is applicable in the following 2 situations:

  • If you meet the criteria allowing you to benefit from the right to be forgotten or to enter into the framework of the reference grid
  • If you present an aggravated health risk and the borrower insurance application cannot be accepted under the standard conditions of the insurance contract (guarantees and price).

Who is concerned by AERAS insurance? For which diseases?

The agreement is intended for people presenting an aggravated health risk. The diseases included in the AERAS scheme include the following:

  • Cancer
  • Hodgkin lymphomas
  • Acute promyelocytic leukemia
  • Viral hepatitis C
  • HIV
  • cystic fibrosis
  • Chronic myeloid leukemia
  • Burkitt’s leukemia
  • Chronic HCV viral hepatitis
  • Pilocytic astrocytoma
  • Adenocarcinoma of the prostate

The right to be forgotten for former cancer patients

The right to be forgotten is the absence of obligation to declare a pathology to the insurer. From June 1, 2022, the right to be forgotten will be set at 5 years for hepatitis C and all cancers. This means that you will not have the obligation to declare your illness to the insurer as early as 5 years after the end of your therapeutic protocol.

This reduction in the right to be forgotten period aims to facilitate access to mortgages for former cancer patients.

Before this datethe right to be forgotten applied either 5 years from the end of the therapeutic protocol if the cancer had been diagnosed before your 21 years, or 10 years later if the cancer had been diagnosed after your 21 years.

What is the reference grid of the AERAS convention?

A reference grid is defined by the AREAS convention. This reference grid lists the pathologies/diseases (cancer pathologies and other pathologies, including chronic ones) allowing access to borrower insurance under standard conditions or approaching them.

This grid, determined by an AERAS working group, is scalable. This list is updated according to the pace of therapeutic progress and available epidemiological data.

The reference grid of the AERAS convention defines :

  • The characteristics of the illnesses and the deadlines beyond which no additional premium (price increase) or exclusion of cover may be applied to people who have suffered from these pathologies
  • The maximum additional premium rates that may be applied by insurers, for certain illnesses

The reference grid of the AERAS agreement is only applicable to insurance contracts that meet the following two conditions:

  • The insured part of your home loan, financing your main residence, must not exceed €320,000 (excluding bridging loan)
  • The requested insurance contract must expire before you turn 71

The AERAS agreement can also be activated for professional financing (acquisition of premises and/or equipment) or real estate unrelated to your main residence. The insured part must not exceed €320,000, taking into account any insured part of the capital remaining due for previous operations requiring the guarantee of the same insurer.

The loan insurance application process with AERAS

It may exist 3 levels of analysis in your insurance application process for your home loan if you have health problems.

1st level of analysis:

The 1st level is the insurance contract with a standard guarantee, with or without additional premium. If your state of health does not allow you to have this insurance contract, your request is automatically transferred to a second level of analysis. You do not have to take any particular steps for this transfer.

3rd level of analysis:

To be submitted to a 3rd level of analysis within the framework of the AERAS conventionyour request must meet the following conditions:

  • The insured credit must not exceed €320,000 (excluding bridging loan)
  • The requested insurance contract must expire before you turn 71

Following this new analysis, the insurer can :

  • Accept your insurance request: the insurance contract may include an additional premium or an exclusion of cover.
  • Refuse your insurance request by justifying the reasons for this refusal: if you think that the rules of the AERAS convention have not been applied, you have the possibility of seizing the mediation commission of the AERAS convention

Reminder : from June 1, 2022, the transmission to your insurer of any information relating to your state of health or of a health examination is suppressed if the share of the loan per person is less than 200,000 euros and if the loan is due for maturity before you turn 60.

If you believe that the rules of the AERAS convention have not been applied when you apply for insurance (right to be forgotten), you have the possibility of seizing the mediation commission of the AERAS convention.

The role of this mediation commission is to :

  • Find an amicable solution to the situation
  • Facilitate dialogue between your doctor and your insurer’s medical advisor

This committee is not competent to rule on the following elements :

  • The level or additional insurance premium: this is part of the commercial policy of the insurer
  • Warranty limitations and exclusions
  • The decision and conditions for granting credit: this is the responsibility of the lender

To enter this commission, you must send your written request and a copy of your file to the following address :

Mediation commission of the AERAS convention

4 Budapest Square

CS 92459, 75436 Paris cedex 09

Alternatives for the loan guarantee in the event of a health problem

Within the framework of the AERAS agreement, the banks have undertaken to accept alternatives providing guarantees when the insurer cannot guarantee the loan.

Alternative guarantees must offer the same security as insurance for the borrower and the lender.

These alternative guarantees can be the following :

  • A life insurance contract that you have already taken out
  • A mortgage on real estate (different from the one to be financed)
  • A portfolio of securities pledged to the bank
  • The surety of one or more natural persons
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