Insurance: A Lemoine Law With Conflicting Application – Business

The report by deputies Stéphane Vojetta and Philippe Naillet (relatives of Renaissance and PS) does not aim to evaluate the law: it is an application report which aims to take stock six months after its promulgation. This is a partial inventory, as some provisions only entered into force on 1um last September.

Infra-annual termination of the borrower’s insurance

The flagship measure of the Lemoine Act was to allow for an interim termination right (RIA) of the borrower’s insurance. The order of May 27, 2022 was issued before the 1um June 2022, date of entry into force of the provision for new contracts (the stream). For contracts in progress (stock), the provision has been in force since 1um September.

Patricia Lemoine had expressed concern, in a letter addressed to the Advisory Committee of the financial sector, “for the delaying measures of some banking institutions on the establishment of the RIA”. The French Banking Federation and the services of the Ministry of the Economy reassured the speakers: “the parties heard agree in recognizing that traditional banks and insurers have, almost systematically and without notable exceptions, correctly implemented the procedures and technological adjustments necessary for the application of the law”.

However, the rapid increase in interest rates due to the economic environment means that, for the moment, the speakers could not observe any substitution in favor of alternative insurers.

Extension of the right to be forgotten

Article 9 provides for the right to be forgotten for cancerous pathologies and hepatitis C starting five years after the end of the therapeutic protocol. It also provided for the opening of negotiations for the extension of this right, under threat of a decree. No decree has been issued, but negotiations on hepatitis C and HIV have continued.

From 1um October, HIV moved from Part 2 of the AERAS Grid to Part 1, which eliminates additional premiums and warranty disclaimers. A new threshold has also been established to benefit from the reference network (420,000 euros instead of 320,000 euros).

Studies will be needed to extend the right to be forgotten to other pathologies. By 2024, they will focus in particular on epilepsies, so-called “good prognosis” cancers, renal failure, haemophilia A and B, Von Willebrand disease, incapacity for work and disability.

The removal of the health questionnaire

Initially not present in the bill, the removal of the health questionnaire for loans under 200,000 euros came from the Senate. For the speakers, it has led to an increase in the insurance premiums of alternative insurers: the services of the Ministry of Finance estimate this increase at around 20-25%, these insurers not being able “to rely on strong pooling unlike group insurers. This increase is not seen in all establishments.

The ministry also found a legislative bug: the wording of article 10 means that this suppression is not applicable to insurance contracts governed by the mutuality code. The government wanted to table an amendment to a bill this summer, but it was seen as a legislative leap. “Even if no mutual insurer has taken advantage of this regulatory vacuum not to apply the law”, another legislative vehicle is being sought.

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