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insurance coverage equivalence

INSURANCE COVERAGE EQUIVALENCE

REGULATORY OBLIGATION

The Lagarde Act of the 1st of July, 2010 introduced the idea of coverage level equivalence in borrower insurance. Since then, lending institutions cannot reject the coverage of another insurance policy if this policy has a coverage level that is equivalent to that of the group policy it offers.

To make borrower insurance policies more transparent, in January 2015 the Financial Sector Advisory Committee (Comité Consultatif du Secteur Financier, CCSF(1)) issued a list of specific criteria that lending institutions may use to justify their rejection of mortgage loan insurance.

In accordance with this regulation, BNP Paribas used the criteria listed below, corresponding to its risk policy. These criteria apply depending on the type of transaction, type of loan and your employment status.

However, if you would like to use your ability to submit an insurance policy offered by a third party, or your ability (with or without an agent) to substitute an insurance policy provided for by Article L 312-9 before the loan offer is issued, or your ability (with or without an agent) to substitute an insurance policy provided for by Article L 312-9 after the loan offer is issued, we encourage you to read the following documents (in French only) that detail the steps you will have to take.

(1) For more information about coverage level equivalence in borrower insurance, visit the website of the Financial Sector Advisory Committee: www.banque-france.fr/ccsf/fr/index.htm

LIST OF APPLICABLE CRITERIA

① List of "criteria" required for an amortizable mortgage loan regarding an employed "individual".

SPECIFIC CRITERIA

REQUIRED
PORTION

Death coverage, if applicable

Coverage of amateur sports the borrower plays on the date the loan is taken out
Continued worldwide travel coverage for personal, professional or humanitarian purposes
Death coverage throughout the duration of the loan

100%

Total and irreversible loss of
independence coverage, if applicable

Coverage of amateur sports the borrower plays on the date the loan is taken out
Continued worldwide travel coverage for personal, professional or humanitarian purposes

100%

Total temporary incapacity coverage,
if applicable

Coverage of amateur sports the borrower plays on the date the loan is taken out
Continued worldwide travel coverage for personal, professional or humanitarian purposes
Incapacity coverage throughout the duration of the loan
Deferred period
Coverage for non-working persons at the time of the claim
Back condition coverage
Psychiatric condition coverage

100%

Total and permanent disability coverage,
if applicable

Coverage of amateur sports the borrower plays on the date the loan is taken out
Continued worldwide travel coverage for personal, professional or humanitarian purposes
Disability coverage throughout the duration of the loan
Back condition coverage
Psychiatric condition coverage

100%


② List of "criteria" required for an amortizable mortgage loan regarding a self-employed "individual".

SPECIFIC CRITERIA

REQUIRED PORTION

Death coverage, if applicable

Coverage of amateur sports the borrower plays on the date the loan is taken out
Continued worldwide travel coverage for personal, professional or humanitarian purposes
Death coverage throughout the duration of the loan

100%

Total and irreversible loss of
independence coverage, if applicable

Coverage of amateur sports the borrower plays on the date the loan is taken out
Continued worldwide travel coverage for personal, professional or humanitarian purposes

100%

Total temporary incapacity coverage, if applicable

Coverage of amateur sports the borrower plays on the date the loan is taken out
Continued worldwide travel coverage for personal, professional or humanitarian purposes
Incapacity coverage throughout the duration of the loan
Deferred period
Back condition coverage
Psychiatric condition coverage

100%

Total and permanent disability coverage,
if applicable

Coverage of amateur sports the borrower plays on the date the loan is taken out
Continued worldwide travel coverage for personal, professional or humanitarian purposes
Disability coverage throughout the duration of the loan
Total disability reimbursement, without reference to the loss of income that occurred at the time of the claim
Back condition coverage
Psychiatric condition coverage

100%


③ List of "criteria" required for an interest-only mortgage loan or bridge loan regarding a self-employed "individual" or a non-working "individual".

SPECIFIC CRITERIA

REQUIRED
PORTION

Death coverage, if applicable

Coverage of amateur sports the borrower plays on the date the loan is taken out
Continued worldwide travel coverage for personal, professional or humanitarian purposes
Death coverage throughout the duration of the loan

100%

Total and irreversible loss of
independence coverage, if applicable

Coverage of amateur sports the borrower plays on the date the loan is taken out
Continued worldwide travel coverage for personal, professional or humanitarian purposes
Total and irreversible loss of independence coverage throughout the duration of the loan

100%


Loan insurance covers repayment of the loan in the event of a certain number of unforeseen circumstances, such as work leave or disability, total and irreversible loss of independence, loss of employment and death.

Starting now, you can find out more about our BNP Paribas Borrower Insurance policy, designed to meet your needs.

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For assistance or to make a claim/contest a charge, your advisor can be reached on their direct line (a standard rate call).