Loan insurance, documents to provide to join
First, you will need to send the following documents back to the insurance company so that they can start the study of your file:
- the insurance application or application for membership dated and signed (having verified that the information corresponds to your loan project),
- the SEPA mandate and the RIB
- a copy of a valid ID or a Kbis of less than 3 months for legal entities
- Medical formalities requested.
Loan insurance, medical formalities
A medical questionnaire must be completed to enable the insurer to identify any health risks of the insured. This is a list of questions that must be answered yes or no. This medical questionnaire gives an update on the operations you have undergone and your health history, including your family history (diabetes, heart disease, insanity, suicide), your various conditions (rheumatism, blood pressure, nervous breakdowns, tumors) , your work stoppages, your specialized treatments.
We advise you to complete this questionnaire very honestly and to have your doctor assist you in case of doubt about an issue because the statements made on the health questionnaire are binding on you, they are certified as accurate by your signature and are the basis of the insurance contract. .
Indeed any voluntary omission or misrepresentation could result in the nullity of your insurance contract. So if your false statement and bad faith are proven and intentional, the insurer may declare the contract void, that is to say refuse any compensation in case of disaster. If your fault is proved in good faith, the proportional rule will be applied: the compensation will be reduced in proportion to the premium paid compared to what it should have been if the risk had been declared.
Depending on your age and the amount to be borrowed, some companies will also directly request a medical examination, additional blood tests or a control electrocardiogram. In order to save time and not have to advance the fees, we advise you to go directly to a doctor recommended by the insurance company.
The medical formalities differ from one company to another: some will ask for a medical report and quite advanced exams at the age of 50 and from 150 000 € borrowed. Others will be much more flexible and complete a simple health questionnaire up to € 400,000 borrowed. This criterion can be important if you are in a hurry to get your membership certificate.
If you already have a large sum insured in a company, if you make a new real estate investment, and if you still want to continue to be insured with this company, then the medical formalities will be more important since the company will base on the total outstanding insured at home and no longer just the amount to guarantee for your new loan. In this case, having yourself insured by another company with whom you will have a virgin outstanding will be a solution to carry out minimal medical formalities. In all cases, consult us, we will indicate you precisely the medical checklists company by company and will help you to direct to the one most adapted to your situation.
If your medical questionnaire contains an exclusivity of no, in this case the edition of the certificate of adhesion will be very fast.
In the case where “yes” are checked, it means that the insured has certain conditions that will require a thorough study of the medical adviser of the medical service of the insurance company. The medical adviser will then send the insurable a series of complementary questions and will also ask in some cases for additional medical examinations. Several round trips between the insurable and the medical adviser are then possible until the medical adviser can decide. This will occur especially when the person to be insured presents an aggravated health risk.
Borrower insurance, the decision of the medical adviser of the company
The decision rendered following the advice of the medical adviser can be either an acceptance at the normal rate, or an acceptance of the pathology but with a premium, or the exclusion of the pathology. In the latter case the borrower will not be insured for the pathology in question.
The insurable will receive this decision by mail and will then have to accept it by sending back the signed mail, either to contest it. In the case of dispute, the insurer must send a letter to the medical service of the insurance company explaining why he thinks that the exclusion or the surcharge is not justified and the medical consultant can then re-examine the file by asking complementary questions.
In order to avoid too many round trips and thus take the risk of not being assured in time, we advise you to fill out the medical questionnaire as clearly as possible and especially to provide the first series of complementary questions that the doctor advice will send you the maximum of elements necessary so that it can appreciate the real risk related to your pathology (report of medical examinations, blood tests …).
Loan Insurance: Convention and the Right to Forget
In order to facilitate access to insurance and credit for people who have been diagnosed with cancer, as well as other pathologies, the AERAS Convention (insuring and borrowing with an aggravated health risk), revised on 2 September 2015 and the law of January 26, 2016 to modernize our health system have put in place mechanisms to improve the consideration by insurers of therapeutic advances for people with or having suffered from certain pathologies:
- On the one hand, by setting up a “right to be forgotten” allowing people who have been diagnosed with cancer to no longer have to declare it, under certain conditions to be fulfilled at the time of contracting a borrower insurance. .
- On the other hand, by setting up a reference grid that sets:
- the deadlines beyond which no increase of tariff (surcharge) or exclusion of guarantee will be applied for certain pathologies ;
- maximum premium rates applicable by insurers for certain conditions that do not allow access to borrower insurance at a standard rate.
The AERAS Convention allows up to two additional levels of examinations of your file by medical specialists to offer you a solution and allow you to access the loan. It is the insurance company that has refused your file which is responsible for having your file re-examined with their reinsurer partners, at reinsurer level 1 first and then reinsurer 2 if reinsurer 1 refused to insure the person.
The certificate of membership certifying the borrower’s insurance delegation
Once the insurance decision has been made and once you have accepted it, it will then be necessary to provide the insurer with the final information on your loan: amount, rate, duration, effective date . From then on, the insurer can proceed to the issue of the certificate of adhesion which will be published in 3 copies: one to the attention of the insured, one to the attention of the beneficiary bank and one to the attention of the insurance company. The 3 copies must be signed by the 3 parties.
The certificate of adhesion or delegation of insurance certifies that the borrower is insured, by clearly mentioning the guarantees that cover it (death, total and irreversible loss of autonomy, incapacity for work, disability …), the insured capital, the insured portion, the effective date of the contract, and especially indicating that the bank is the beneficiary accepting the contract and that it will be reimbursed directly by the insurer in case of loss.
Before starting any borrower insurance underwriting procedure with a company, we strongly invite you to have your banker validate that the general conditions of the chosen company are equivalent to those of their group contract so as not to risk a refusal from the bank once the membership certificate has been issued.
Once the membership certificate in possession of your bank, they will be able to edit the loan offer
The insurer will start collecting insurance premiums from the effective date of the borrower insurance contract and according to the periodicity you have chosen (monthly, quarterly, semi-annual, etc.).
During the contract, it is possible to make amendments modifying the characteristics of the contract. Note, however, that these endorsements are subject to validation by the bank as an accepting beneficiary.