Borrower insurance
Delegation of borrower's insurance: when to request it for a new loan?
For a new loan, the delegation of insurance is prepared before the offer: documents to request, order of procedures, what the bank cannot do.
For a new loan, the delegation of insurance is requested before the issuance of the offer and is prepared from the first simulation, based on the bank's standardised information sheet. Until the signature of the offer, the lender cannot refuse a contract with an equivalent level of guarantee, nor modify the rate of the offer or charge fees in return. If the deadline is too short: the contract can be changed afterwards.
By Sandy MASCART, mandataire d'intermédiaire en opérations de banque et en services de paiement ORIAS 26000541 sous le mandat de CDV PATRIMOINE & ASSURANCE (ORIAS 14005573)
Key points
- For a new loan, the delegation of insurance is requested before the issuance of the offer and is prepared from the first simulation.
- Until the signature of the offer, the lender cannot refuse a contract presenting an equivalent level of guarantee, with a written and reasoned refusal.
- By accepting a delegated contract, the lender cannot modify the rate or the conditions of the offer, nor charge analysis fees.
- The standardised information sheet sets the criteria for equivalence guarantee by guarantee; an external quote must comply with it.
- Signing with the bank's contract and then changing it once the loan is in place remains a right at any time, without waiting for an anniversary date.
For a new loan, the insurance delegation must be requested before the issue of the loan offer and should be prepared from the first simulation. The lender cannot refuse a contract of equivalent guarantee level. The context: borrower insurance.
Insurance delegation, in one line
You present to the lender the contract of another insurer in place of its own.
| Delegation at subscription | Change during the loan | |
|---|---|---|
| When | Before the signature of the loan offer | At any time during the life of the loan |
| What is at stake | The date of issue of the offer, and therefore the preliminary sale agreement | Nothing urgent: the loan is already in place |
| Where it is explained | Here | In the article on changing insurance |
The lender cannot refuse or charge
Until the signature of the loan offer, the lender must accept a contract of equivalent guarantee level. A refusal must be written and justified. It cannot change the rate nor claim fees.
Le prêteur
Les critères retenus figurent dans la fiche standardisée d'information, garantie par garantie. Un contrat se compare à cette liste, pas à la notice entière du contrat de la banque.
- En vigueur depuis le
- Source
- Article R. 313-23 du code de la consommation — Légifrance
Refusal? Assert the equivalence.
The two documents to request
The standardised information sheet: required guarantees and share per borrower.
Lors de la première simulation
Elle est due à toute personne à qui une assurance est proposée ou qui en sollicite une. Si vous ne l'avez pas reçue, demandez-la par écrit.
- En vigueur depuis le
- Source
- Article L. 313-10 du code de la consommation — Légifrance
The cost of the lender's insurance, in the three mandatory forms:
Compare: the TAEA. Read the exclusions: the notice.
Five steps to meet the deadlines
- Initial simulation: standardised form requested, delegation announced.
- External quotes: same guarantees, premiums and term.
- Medical formalities without delay: this is the step that causes dates to be missed.
- Insurer’s agreement: complete file submitted to the bank, in one go.
- Bank’s response: loan offer issued with your policy, or a reasoned refusal to which you respond point by point.
Avant l'émission de l'offre, c'est le calendrier de votre compromis qui commande : raison de plus pour déposer tôt un dossier complet.
- En vigueur depuis le
- Source
- Article L. 313-31 du code de la consommation — Légifrance
Protect the timeline of your purchase
- Simple profile: delegate from the loan offer, a single policy.
- Medical file to be reviewed: start both tracks on the same day.
- Short deadline: sign with the bank’s policy, change it afterwards.
- Résiliation possible à tout moment oui
- Prise d’effet après réception de la demande 10 jours
La substitution reste soumise à l'équivalence des garanties et à l'accord du prêteur. Ce droit fait de la délégation immédiate un choix, non une course.
- En vigueur depuis le
- Source
- Article L. 113-12-2 du code des assurances — Légifrance
Setback: a possible health questionnaire, later.
The errors that lead to failure
- Comparing a price without the criteria of the bank.
- Copying the premiums from memory.
- Minimising a health response.
- Sending the file in fragments.
- Cancelling before the written agreement of the new policy.
I am a mortgage intermediary working under mandate. Documents to gather · fees. This article is for information purposes only. The activity of insurance intermediation is carried out as an ancillary activity to the activity of intermediation in banking operations: it does not constitute an offer of insurance, nor personalised advice on a specific contract. Have the delegation scheduled by telephone.
Create your file from the initial simulation.
Sources
- Légifrance — Article L. 313-30 du code de la consommation
- Légifrance — Article L. 313-32 du code de la consommation
- Article L. 313-10 du code de la consommation — Légifrance
- Article R. 313-23 du code de la consommation — Légifrance
- Article L. 313-31 du code de la consommation — Légifrance
- Article L. 313-8 du code de la consommation — Légifrance
Read next
- Home loan insurance in Lyon: Sandy MASCART
- Mortgage in Lyon: frequently asked questions
- Equivalence of guarantees: the criteria the lender selects, and how to challenge them Who selects the equivalence criteria, where to find your lender’s list, how to read a refusal letter, and the deadlines running against the lender.
- The TAEA: the single figure that compares two insurance policies, and how to read it What the TAEA actually measures, why a premium rate is not one, and the three normalisations without which it compares nothing.
- Reading a borrower insurance policy document: the six lines that determine your compensation, and the seventh Incapacity, compensation, deductible, exclusions, age limits, TAEA: the reading order that reveals what you will receive, and the forgotten seventh line.
All articles on this topic: Borrower insurance