Good progress for the sick on borrower insurance

The Lemoine law confirms the disappearance of the medical questionnaire for loans of less than €200,000 (€400,000 for a couple)

This 1er June 2022 marks a great victory for all patients and former patients who wish to borrow and must then take out borrower insurance. Although this insurance is not compulsory, it is often required by lending banks to compensate for the possible default in repayment of the loan if the borrower falls ill, has an accident or dies. However, the new Lemoine Law now makes it possible to take out borrower insurance, without submitting to any health questionnaire, for any loan of less than €200,000 or €400,000 for a couple. To be completely precise, the Law indicates that “no information relating to the state of health or any medical examination of the insured may be requested by the insurer, subject to compliance with all of the following conditions :

  1. The insured portion of the cumulative outstanding loan contracts does not exceed €200,000 per insured;
  2. The due date for repayment of the contracted loan is prior to the sixtieth birthday of the insured. “.

In addition, the Lemoine Law shortens the period of the “right to be forgotten” (right according to which insurers no longer have the possibility of requesting or taking into account medical information, a certain time after the end of the therapeutic protocol) , which now goes from 10 to 5 years in cases of cancerous pathologies and hepatitis C.

Another flagship measure of the Lemoine Law and which this time concerns everyone: the possibility of terminating, now at any time, your borrower insurance to change it and perhaps obtain better conditions.

France Assos Santé welcomes such advances because additional premiums, exclusions of guarantees, even refusals to insure sick people are a form of authorized discrimination. However, it fears that the prices of borrower insurance will generally increase or that the insured will ultimately be less well covered. ” One could imagine, as is the case for repatriation insurance when going abroad, that borrower insurance automatically excludes the insured when they are sick or convalescing at the time of taking out the contract. . So this actually facilitates access to the loan but it does not really protect the insured who pays for insurance which he might not be able to benefit from if necessary. It will be necessary to be very vigilant about the quality of the guarantees that will be offered. “, explains Stéphane Gobel, coordinator of Health Info Rights.

He specifies that it will also be interesting to see how insurers are going to deal with questions concerning whether or not they are smokers, or those about weight and height, which insurers systematically ask because they are all two important determinants of health. Will users now be required to respond when they borrow less than €200,000?

Why questionnaires and health examinations to take out borrower insurance?

Every chronically ill or former ill person who has ever had to take out borrower insurance knows that it is a painful and stigmatizing step and that such insurance will almost always cost them more than for someone who has had no health problem. Indeed, the insurance companies seek, through various questionnaires and health examinations, to assess the risk for the insured of not being able to repay their loan to the end and generally “cover” this risk by applying increases on certain guarantees*. If the risk is too great, they can also exclude the insured from certain guarantees or simply refuse to insure him. In such cases, the bank may therefore reject the loan application.

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