INSURANCE COVERAGE EQUIVALENCE
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".
② List of "criteria" required for an amortizable mortgage loan regarding a self-employed "individual".
③ List of "criteria" required for an interest-only mortgage loan or bridge loan regarding a self-employed "individual" or a non-working "individual".
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.
BNP PARIBAS, THE BANK FOR A CHANGING WORLD
For assistance or to make a claim/contest a charge, your advisor can be reached on their direct line (a standard rate call). If you do not have the number for their direct line, you may send them a secure message when logged into your account and they will provide you with this information.