After several weeks of votes, cancellations and new votes, the annual termination came into effect on March 1st only in part. The opportunity is (re) given to return to a device likely to upset the market.
What is annual termination?
” The annual right of termination of the borrower insurance is finally devoted, without any ambiguity, in Article L. 313-30 of the Insurance Code! It is with some satisfaction that the UFC-Que Choisir consumer association has welcomed this provision.
And for good reason… Thanks to this measure, the comparison of home loan insurance becomes easier for the insured. With the possibility of eventually saving money on insurance premiums.
As a reminder, the annual cancellation allows you to terminate your credit insurance contract on each anniversary date. According to a study by McKinsey, 63% of borrower insurance files would be covered by the new text.
How it works ?
The application of the law takes place in 2 stages: March 1, 2017 for new contracts and January 1, 2018 for old ones. Let’s recap:
you sign a loan insurance after March 1st => You have up to 1 year after signing the mortgage to terminate your contract. The cancellation is made by registered letter with acknowledgment of receipt, at the latest 15 days before the end of the first year of the contract. At the end of the 12 months, you will be able to cancel your contract on each anniversary date of the contract. In this case, a notice of 2 months must be respected.
you have already signed loan insurance => Termination will be possible as of January 1, 2018. A notice of 2 months is necessary. For example, if your contract was signed in March 2012, you can cancel your contract in March 2018, but your application must be sent two months earlier (January 2018).
The Hamon law is still applied
For the record, the Hamon law established in 2014 the possibility of terminating its borrower insurance contract until 1 year after the signature of the loan. This provision still exists.
Let’s say that you signed a mortgage loan before July 2016: you can then cancel your insurance contract until July 2017. Beyond? Termination will be possible, but only from July 2018, the anniversary date of your contract.