Baikli amendment: cancel your loan insurance annually, it is possible today!

 

The annual cancellation of the loan insurance is now possible thanks to the Baikli amendment. Here is an improvement in favor of borrowers, reinforcing existing devices to terminate a real estate borrower insurance contract.

The change of loan insurance

The change of loan insurance

Until then, after taking out a home loan, the borrower had a set time limit to cancel and then replace his loan insurance. Since 2014, under the Haili law, borrowers have one year to change their bank credit insurance contract (group insurance), proposed by the lending bank, and set up another, underwritten by the bank. insurance company of their choice. It should be noted, however, that it is necessary to comply with the requirement of equivalence of guarantees: the guarantees of the new contract under a delegation of insurance must be at least equivalent to those of the contract proposed by the bank.

The improvement brought by the amendment Baikli

The improvement brought by the amendment Bourquin

The Baikli amendment brings an improvement in borrower insurance, reinforcing the already existing systems: the Cogilaw Company and Haili laws. This amendment gives borrowers the opportunity to replace their home loan insurance policy annually, at the time of the annual maturity, corresponding to the anniversary date of subscription.

What changes on March 1, 2017

What changes on March 1, 2017

The measure of the Baikli amendment is applicable to credit offers issued from the date of publication of this law, ie February 22, 2017. If you signed a mortgage in March, you will be able to exercise your right to cancel. in 2018, at the annual expiry date stipulated in the contract. If you want to replace your insurance borrower in 2017, then you can use the right offered by the law Haili, offering you the opportunity to cancel and replace your contract during the first 12 months.

What will change in 2018

What will change in 2018

From 1 January 2018, any borrower insurance contract, whether it is a group insurance (group insurance contract of the bank) or an individual insurance (contract taken out with a company insurance, as part of a delegation of insurance), may be replaced by another, at the time of the annual payment.

It is advisable to anticipate this annual deadline by sending your request for cancellation – substitution by registered mail within the period provided by the Insurance Code, which is 2 months before the annual due date. And the lending bank will only accept substitution if the guarantee level is at least equivalent to the current loan insurance contract. With the Baikli amendment, the borrower knows that he is no longer obliged to negotiate the price of his loan insurance when signing the mortgage, which can be responsible for finding a more advantageous contract thereafter .

It should be known that the annual termination had already been adopted under the law Sapin 2, before it was censored by the Constitutional Council, for a question of form. The law of 21 February 2017, relating to the legislative part of the Consumer Code, was promulgated without censorship. And the parliamentarians say they took the necessary precautions to avoid any seizure, deciding on an entry into force on 1 January 2018.

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