Loan Insurance Law: a new bill in July 2019

Martial Corbin, on the initiative of the Corbin Amendment to the Nasnip 2 Law on Loan Insurance, recently announced that he will make a new loan insurance bill in July, in order to reinforce the feasibility of a change of contract. ‘insurance.

Law Corbin: the results

Law Corbin: the results

The Corbin law allows borrowers to terminate and change their loan insurance contract each year on the anniversary date of signing the credit agreement. But when socialist Senator Martial Corbin takes stock of this insurance law bearing his name, he does not display as much optimism and satisfaction as insurers.

One year after the introduction of the annual termination of the loan insurance contracts, which did not really provoke the expected result as regards the possible annual change of insurance of the borrowers, but which nevertheless allowed a fall in prices, Senator Corbin obviously did not finish with the borrower insurance.

A certain determination to return to the attack

A certain determination to return to the attack

It shows indeed a certain determination to return to the attack, with always the same objective: “to give back purchasing power to families” and “to play the competition”. According to him, “there are encouraging signs and some insurance companies have played the game, but many brokers say that it is complicated and that there are difficulties in the application of the law, especially to obtain the date of subscription of the contracts “.

The bancassureurs expLawting the blurred zones of the Corbin law so that the handling of the files drag on, or even to refuse the request for a change of insurance, the ACPR (Prudential Control and Resolution Authority) pinned some of their practices. One of these was to quibble about the date on which the customer can indeed use the right offered by the amendment Corbin.

Then, professionals from the sector, via the CCSF (Financial Sector Advisory Committee), agreed on the harmonization of practices by retaining as the date of termination the anniversary date of conclusion of the mortgage credit agreement. So, one could think that everything was settled.

Towards a bill in July

Towards a bill in July

But, Martial Corbin said that “despite the advice of the CCSF, we continue to have problems because some apply it more or less, this date is not registered in the law.” According to him, the solution would be “to put it in the law, because no one is supposed to ignore the law”. As a result, a bill signed by the senator is in preparation. The purpose of the latter is to specify that the annual date of termination of a loan insurance contract corresponds to the anniversary date of conclusion of the mortgage credit agreement. Also, it would detail the sanctions incurred in case of non-compliance with the law.