Borrower insurance · Guide
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 equivalence of guarantees is assessed criterion by criterion, based on the list the lender has itself selected for each type of guarantee, never on an overall comparison of the two contracts. This list must be requested in writing for your file, and the contract is established in light of it. In the event of a refusal, you should ask which criterion is missing and for which guarantee; the lender’s response deadline begins upon receipt of the request.
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
- Equivalence is assessed criterion by criterion, based on the grid the lender has itself selected, never on an overall comparison of the two contracts.
- The criteria must have been recalled before the substitution request: a criterion absent from this recall is open to discussion, and the burden of identifying it lies with the lender.
- The extent of coverage is assessed guarantee by guarantee: a substitution contract with a global extent or a different allocation will be refused on this point alone.
- A lower annual effective insurance rate does not prove equivalence: it may simply indicate guarantees with a narrower scope.
- The lender’s response deadline has two starting points: receipt of the substitution request before the loan offer, and receipt of another contract during the loan term.
“Your policy does not provide an equivalent level of cover”: the refusal letter does not state which criterion is missing. Request the bank’s list of criteria, and the refusal can be discussed point by point. The context: the borrower insurance file; procedure and letter template: the Lemoine Act.
Equivalence of cover, criterion by criterion
It is assessed point by point, based on the criteria that your lender has retained for each type of cover. A policy that fails to meet a single retained criterion is not equivalent; a policy that meets all of them is.
Who selects the criteria
Le prêteur
Les critères qui vous seront opposés sont ceux que votre prêteur a retenus, par type de garantie exigée. Quand la délégation est demandée avant l'offre, le texte lui en fait transmettre le rappel : c'est ce document qu'il faut détenir.
- En vigueur depuis le
- Source
- Article R. 313-23 du code de la consommation — Légifrance
- A “reminder” of the criteria: the grid exists before your application. Request it. Is a criterion in the refusal absent from the reminder? Ask where it was listed.
- “By type of cover required” (Article R. 313-23 of the Consumer Code): a grid that does not distinguish between types of cover is merely a principle.
- After analysis of your situation: request the list for your file.
No article of the Code specifies a number of criteria. The common framework is published on ccsfin.fr.
Where to read the grid
The standardised information sheet, from the first simulation onwards, and the reminder of the criteria provided when you ask to delegate before the offer. Have you not received it? Request it in writing.
Lors de la première simulation
La remise est déclenchée par le premier chiffrage, pas par la signature ni par le dépôt du dossier.
- En vigueur depuis le
- Source
- Article L. 313-10 du code de la consommation — Légifrance
- Obtain the sheet and check its date.
- Request the criteria retained, guarantee by guarantee, in writing.
- Have the contract drawn up against this list, not against a price.
Seven families of criteria to compare
| The family of criteria | What it decides | What to put against it |
|---|---|---|
| The required guarantees | Which guarantees must exist | The guarantees of the proposed contract, one by one |
| The coverage ratio per guarantee | What share of the capital is covered | The coverage ratio of the proposed contract, per guarantee and per person |
| The definition of incapacity and disability | Whether the guarantee applies | The exact definition in the policy document |
| The method of compensation | How much is paid | Lump sum or based on loss of income |
| The waiting periods before compensation | When the first payment is made | Excess and waiting period |
| The exclusions | What is never covered | The excluded risks and any surrenders |
| The age limits | Until when each guarantee runs | The age limits, guarantee by guarantee |
- décès
- perte totale et irréversible d’autonomie (PTIA)
- incapacité temporaire totale (ITT)
- invalidité permanente totale (IPT)
- invalidité permanente partielle (IPP)
- perte d’emploi
L'équivalence s'apprécie garantie par garantie, jamais sur le contrat pris globalement.
- En vigueur depuis le
- Source
- Légifrance
- The coverage ratio is declared guarantee by guarantee, and per person (article R. 313-23). A global coverage ratio is sufficient to lead to a refusal: the coverage ratio for a couple.
- The exclusions are part of the criteria: deal with them before the application (the exclusions to look for).
A lower TAEA proves nothing
The annual effective rate of the insurance is accompanied by the guarantees it covers. A lower rate may indicate a narrower scope.
Un taux affiché sans la liste des garanties correspondantes n'est ni conforme, ni comparable.
- En vigueur depuis le
- Source
- Article R. 314-13 du code de la consommation — Légifrance
First equivalence, then price: the TAEA.
Refusal and its deadlines
Does the refusal name the criterion, the guarantee and what is missing? If not, request it in writing. The response deadline runs from the receipt of your application or the other contract: keep proof of posting.
Il court à compter de la réception de la demande de substitution, telle que la nomme l'article L. 313-31 du code de la consommation. Le texte ne parle que de réception : datez votre envoi et gardez-en la preuve.
- En vigueur depuis le
- Source
- Article L. 313-31 du code de la consommation — Légifrance
Ce délai court en parallèle du précédent, et non après lui. L'avenant doit mentionner le nouveau taux annuel effectif global.
- En vigueur depuis le
- Source
- Article L. 313-31 du code de la consommation — Légifrance
La gratuité vaut pour la substitution d'assurance. Elle ne s'étend pas à un rachat de crédit ni à une renégociation de taux.
- En vigueur depuis le
- Source
- Article L. 313-31 du code de la consommation — Légifrance
- Before the offer: the deadline runs from the receipt of the substitution application.
- During the loan: from the receipt of another insurance contract.
“Incomplete file, the deadline has not run”? Article L. 313-31 speaks only of receipt: ask on what text, and what was missing.
Three rejections that do not hold up
- A criterion absent from the grid: request the list provided, dated, and the rank of this criterion.
- A criterion without guarantee: “insufficient guarantees” designates nothing. Request which guarantee, and what value in relation to which requirement.
- A commercial reason (“no delegation on this product”, “insurer not referenced”): request which criterion is not satisfied.
Follow-up, complaint and mediation: the Lemoine Act.
Equivalent does not mean better protected: read the definition of incapacity and the method of indemnification yourself. Have the contract confronted with the grid, by telephone.
Create your file: insurance is chosen with the loan.
This article has an informational scope. The activity of insurance intermediation is carried out as an accessory to the activity of intermediation in banking operations: it does not constitute either an offer of insurance, or personalised advice on a specific contract.
Sources
Read next
- Home loan insurance in Lyon: Sandy MASCART
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- Mortgage insurance exclusions: back, mental health, sports, professions – what voids a guarantee General, specific, and buy-back exclusions: what is never covered, what can be reinstated for a surcharge, and the combination that the law prohibits.
- Mortgage insurance share: 100/100 or 50/50, how to choose as a couple What remains due to the survivor depending on the chosen split, the overlooked effect on sickness benefit, and a decision grid based on the income gap.
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