Group insurance is a contract that has been taken out by the bank from an insurance company for the benefit of its borrowing clients. It is a collective and standard contract pooling the risks on all policyholders.
A delegation of insurance is for the borrower to take out another loan insurance contract than that of the lending institution, by contacting the insurance company of his choice.
Financial institutions are required to issue all the information about the guarantees and the cost of a loan insurance contract. They must provide borrowers with a standardized fact sheet stating the risks being guaranteed and indicating the terms of the insurance. Any prior offer of consumer loan must inform the borrower of his ability to purchase loan insurance with equivalent guarantees from the insurance company of his choice.
According to articles L113-2 and L112-3 of the Insurance Code, the insured must provide the insurer with the information necessary to assess the risk to be borne. He is thus required to complete a health questionnaire accurately and accurately. In case of intentional misrepresentation by the insured, the insurer may invoke the nullity of the contract (Article L113-8 of the Insurance Code). If the statement is false or lacking in precision but there is no bad faith, the amount of compensation may be reduced, if the premium is lower than that normally due (Article L113-9 of the Insurance Code ).
The information provided in the health questionnaire is protected by professional secrecy. The insured may decide to send this form only to the Insurance Medical Adviser: the insurer is thus not informed of the information relating to his state of health.
The AERAS (Ensuring and Borrowing with an Enhanced Health Risk) agreement aims to enable people who have or have had an aggravated health risk to obtain loan insurance and to obtain such credit. In case of refusal of group insurance from the bank, the credit insurance application file is transferred to a second level of examination. If no solution is found, the file is re-examined a third time by a pool of highly aggravated risks.
The above deadlines may be extended by mutual agreement between the contracting parties. Where it is provided for by a clause of the contract, the lapse for late declaration with respect to the time limits provided for in 3 ° and 4 ° above may be opposed to the insured only if the insurer establishes that the delay in the statement caused him harm. It can not be opposed in all cases where the delay is due to a fortuitous event or force majeure. The provisions mentioned in 1 °, 3 ° and 4 ° above are not applicable to life insurance .
Limited to the duration of the loan, a loan insurance is a temporary hedging contract to guarantee its repayment in the event of death or disability. It may be supplemented by guarantees of incapacity for work and loss of employment. Although legally not compulsory, the subscription of this insurance is most often a necessary condition for obtaining a mortgage. And banks offer borrowers to join their own insurance contract: the group contract. Loan insurance is governed by the Insurance Code.
To see also, the law Chatel, adopted at the beginning of 2008 which regulates the contracts between the professionals of the insurance and their customers on the term of the tacit renewal of the contract.
The insurance contract and the information provided by the insurer to the subscriber mentioned in this code shall be in writing, in French, in apparent characters. By way of derogation from the provisions of the preceding paragraph concerning the use of the French language, where, pursuant to Articles L. 181-1 and L. 183-1, the parties to the contract may apply a law other than the law French, the documents mentioned in the first paragraph of this article may be written in a language other than French. The choice of a language other than French is made by mutual agreement between the parties and, except when the contract covers the major risks defined in Article L. 111-6, at the written request of the subscriber alone. Where the parties to the contract do not have the possibility to apply any other law than the French law, these documents may, however, by mutual agreement between the parties and at the written request of the subscriber alone, be written in the language or in one of the official languages of the State of which he is a national. Where, prior to the conclusion of the contract, the insurer has put questions in writing to the insured person, in particular by a risk declaration form or by any other means, he may not rely on the fact that a question expressed in terms generals received only an imprecise answer. Any addition or modification to the original insurance contract must be confirmed by an amendment signed by the parties. By way of derogation, the modification proposed by the insurer of a complimentary individual or collective health insurance contract aimed at bringing it into conformity with the rules laid down by the Conseil d’Etat decree referred to in Article L. 871-1 of the Code de social security is deemed to be accepted if the subscriber does not oppose it. The insurer shall inform the subscriber in writing of the proposed new guarantees and the legal, social, tax and tariff consequences resulting from this choice under the same article. The latter has a period of thirty days to refuse this proposal in writing. Accepted amendments shall apply no earlier than one month after the expiry of the aforementioned period of thirty days and within a period consistent with the legal and contractual information obligations of the members or affiliates of the subscriber. These provisions shall not prevent the insurer and the insured from being liable to each other even after the issue of the policy or endorsement by the delivery of the policy or rider. a cover note.
Independently of ordinary causes of nullity, and subject to the provisions of Article L. 132-26, the insurance contract is void in the event of reluctance or intentional misrepresentation on the part of the insured, when this reluctance or this misrepresentation changes the purpose of the risk or diminishes the opinion of the insurer, even though the risk omitted or misrepresented by the insured has not affected the claim. The premiums paid then remain with the insurer, who is entitled to the payment of all the premiums due as damages. The provisions of the second paragraph of this article are not applicable to life insurance .
The omission or misrepresentation by the insured whose bad faith is not established shall not invalidate the insurance. If it is established before any loss, the insurer has the right either to maintain the contract, with a premium increase accepted by the insured, or to terminate the contract ten days after notification to the insured by registered letter, in writing. returning the portion of the premium paid for the time when the insurance no longer runs. In the case where the finding takes place only after a loss, the indemnity is reduced in proportion to the rate of the premiums paid in relation to the rate of the premiums which would have been due, if the risks had been completely and exactly declared.