Lemoine law
A 2022 reform that deeply liberalized borrower insurance: cancellation at any time and free of charge, removal of the health questionnaire under conditions, and a right-to-be-forgotten cut to five years for former illnesses. It strengthened competition and borrowers' bargaining power.
Key points
- 2022 reform allowing borrower insurance to be cancelled at any time and free of charge.
- Removes the health questionnaire for loans up to €200,000 per insured repaid before age 60.
- Reduces the right to be forgotten for former cancer conditions to five years without recurrence.
- Requires insurers to justify any substitution refusal on objective grounds.
Frequently asked questions
How does the anytime cancellation right introduced by the Lemoine law work?
Since the Lemoine law, a borrower can cancel their borrower insurance on any date, without waiting for the contract's anniversary. They simply notify the insurer respecting the contractual notice period, while simultaneously presenting a substitute policy at least equivalent to the bank. The bank has a regulatory deadline to approve or refuse the new insurance and cannot charge fees for this procedure.
Which borrowers practically benefit from the removal of the health questionnaire?
The removal applies when the insured loan share is at or below €200,000 per insured and the contract's final payment falls before the insured's 60th birthday. In practice, this covers a majority of first-time buyers and primary-residence borrowers on shorter terms. Older borrowers, those taking out larger loans, or profiles with serious conditions above the thresholds remain subject to the questionnaire.
What is the difference between the Lemoine, Hamon, and Bourquin laws?
The Hamon law (2014) opened the door to cancellation during the first year of the loan; the Bourquin law (2017) extended it to each anniversary date beyond the first year. The Lemoine law (2022) removed both these windows to allow cancellation at any time, with no date condition. It is a total liberalization of insurance portability rights, whereas the earlier laws only created limited opportunities.
In practice
A borrower took out a group policy in 2019 at 0.40% of the initial capital. In 2023, they use the Lemoine law to cancel and take out an individual policy at 0.14% on the outstanding balance. With €220,000 outstanding over 15 remaining years, they save approximately €5,000 over the remaining term.
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Official sources
- Law of 28 February 2022 (Lemoine Act) · Vie-publique.fr
- Borrower insurance for a mortgage · Service-Public.gouv.fr