Real estate loan insurance

The French Federation of Insurance (FFA) had not yet pronounced on the subject. The”subject” in question? The annual cancellation, effective for the old real estate insurance contracts from next January. The FFA nevertheless refrains from taking a real position on this thorny issue.

Annual termination,

Annual termination,

The annual cancellation introduced by the Bourquin amendment at the beginning of the year aims to promote competition in the borrower insurance market. It allows to” break” his insurance on the anniversary date of the contract.

Note that the Hamon law remains valid. This scheme allows borrowers to terminate their insurance within one year of signing the mortgage. In summary, borrowers can terminate their contract:

  • 1 year after the signature of the mortgage loan;

  • on each anniversary date.

The purpose of these cancellation procedures is to encourage borrowers to use the insurance delegation. That is to say the possibility of opting for “external” credit insurance, potentially more advantageous than the insurance offered by the bank.

Inevitably, facing the”big bang” Announced next year, many banks are chickweed. They lodged an appeal with the Constitutional Council in order to refer to the annual termination for old contracts.

The FFA is positioned on the annual termination

The FFA is positioned on the annual termination

The federation, which had not yet expressed its point of view, was positioned this week through a press release. It must be said that the organization is working on eggs: some of its members support the appeal filed with the Constitutional Council, others defend the annual termination. As a result, the position of the FFA lies between the two.

” When the French Banking Federation filed a priority question of constitutionality (QPC) against the legislation authorizing the annual right to cancel borrower insurance contracts, the vast majority of group banking insurance subsidiaries joined. In response to this initiative, several public limited companies and mutual insurance companies have decided to exercise their right to intervene in the procedure, in order to recall that they collectively support the position on the annual cancellation right of the borrower’s insurance. defended during the adoption of the law of 21 February 2017. The authorities of the French Federation of Insurance have taken note, pending the decision of the Constitutional Council.”


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