Hamon law
A 2014 law that allowed borrower insurance to be cancelled and switched at any time during the loan's first year. It accelerated borrower mobility by removing the anniversary-date barrier for new contracts. The Lemoine law has since extended that freedom to the entire loan term.
Key points
- 2014 law allowing borrower insurance to be switched at any time during the first loan year.
- Cancellation takes effect the day after the loan contract's anniversary date.
- Extends the Lagarde law by opening a post-signing portability window.
- Superseded by the Lemoine law which replaces time-limited windows with a permanent freedom.
Frequently asked questions
How did Hamon cancellation work before the Lemoine law?
During the 12 months following the signing of the loan offer, the borrower could notify cancellation of their group insurance at any time. Cancellation took effect on the loan contract's anniversary date, and the borrower had to simultaneously present a substitute policy with equivalent cover. This mechanism created a useful window for borrowers who had accepted the group policy by default at loan time and wished to renegotiate quickly.
Why was the Hamon law a step forward despite its limitations?
Before the Hamon law, the Lagarde delegation was only possible at initial subscription. Many borrowers, under pressure or poorly informed at the time of the loan offer, had accepted the group policy without comparison. The Hamon law gave them a second chance within the first year, allowing those who had since realized the potential savings to act without waiting for the loan to end. It is this logic of correcting an under-informed decision that the Lemoine law subsequently enshrined fully.
Does the Hamon law still apply today?
In practice, with the Lemoine law having introduced anytime cancellation from 2022 onwards, the Hamon mechanism is largely obsolete: it is still technically in force but its effects are subsumed by Lemoine, which offers broader freedom. The Hamon law remains relevant, however, for understanding the legislative timeline and explaining to clients how the market progressively opened to competition.
In practice
A borrower signs their loan in March 2016 and takes out their bank's group insurance without comparison. In January 2017, their broker points out they can save €1,800 per year by switching insurer. They cancel via the Hamon procedure and their new contract takes effect on the March 2017 anniversary date.
Put it into practice with CourtImmo
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Official sources
- Borrower insurance for a mortgage · Service-Public.gouv.fr
- Law of 28 February 2022 (Lemoine Act) · Vie-publique.fr