The borrower insurance FSI integrates the Lemoine reform

A decree published in the Official Journal of May 29 updates the content of the standardized information sheet (FSI) for borrower insurance to include the elements of the Lemoine reform (2).

It informs in particular of the abolition of the medical questionnaire, a flagship measure of the reform with the termination at any time of the loan insurance contract. The FSI thus indicates that the insurer cannot ask to fill it if the quota all credits combined does not exceed 200,000 euros and that the last due date for reimbursement occurs before the sixtieth birthday.

The total cost of the insurance over the first eight years from the effective date of the loan contract must be clearly mentioned, as well as the right to change insurance with equivalent guarantees without the lender being able to oppose it.

The new FSI also strengthens consumer information on the disability guarantee. A new mandatory statement specifies that the concept of disability retained by social security or any other body competent to judge professional unsuitability is not binding on the insurer, bound by the sole definition appearing in the contract.

This last mention follows a recommendation of the Financial Sector Advisory Committee (CCSF) adopted on October 12, 2021. “The recognition of category 2 disability is not that of social security but stems from the conditions of the contract. This is very important information because for many policyholders, recognition by social security is enough.specifies Corinne Dromer, its president.

(1) Order of May 27, 2022 amending the amended order of April 29, 2015 specifying the format and content of the standardized information sheet relating to insurance for the repayment of a loan
(2) Law No. 2022-270 of February 28, 2022 for fairer, simpler and more transparent access to the borrower insurance market

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