Can I be forced to complete a medical questionnaire when my mortgage falls within the boxes of the Lemoine Law, supposed to cancel it for loans of less than 200,000 euros?
Question by Melinda, asked on November 23, 2022
Hello, I am going to take out a mortgage for the purchase of my main residence and the bank confirms to me that I must complete a health questionnaire for the borrower’s insurance when I am 31 years old, that the part borrowed concerning me is 120,000 euros (out of a total loan of 236,000 euros with a co-borrower) and that the duration of the loan is 20 years, i.e. an end of repayment before I turn 60.
According to these elements, I should no longer have to fill out a health questionnaire. Can the insurance and the bank still impose it on me? If they can’t normally enforce it and I don’t state that I smoke (because it increases the cost of insurance), is that considered misrepresentation in case I have any issues later? Thank you for your comeback.
Indeed, some real estate loans are no longer subject to the health questionnaire, since June 1 for new loans and since September 1 for existing loans. This is the consequence of the law of February 28, 2022 for fairer, simpler and more transparent access to the borrower insurance market, also called the Lemoine law. Clearly, this law signs at the end of the medical questionnaire, provided that the part insured on the cumulative outstanding amount of credit contracts does not exceed 200,000 euros per insured and that the mortgage is repaid before the borrower turns 60.
In the context of a loan of 120,000 euros over 20 years for a 31-year-old borrower, there is therefore, in theory, no need for a health questionnaire. However, other information is taken into account. In your case, you explain that the total amount borrowed for the purchase of your principal residence is 236,000 euros. However, for the purchase of a principal residence, banks often ask, especially for first-time buyers or for households with more modest incomes, that each co-borrower be 100% insured, as explained by Scurimut MoneyVox in a previous article. In this case, we often speak of 200% coverage. Which means that in this case each borrower is insured for the entire loan, i.e. 236,000 euros. A loan above 200,000 euros therefore, which explains the presence of the health questionnaire.
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In the context of 50-50 or 60-40 insurance, can the bank still decide to have me complete a health questionnaire? Article 10 of Law No. 2022-270 of February 28, 2022 stipulates that no information relating to the state of health or any medical examination of the insured may be requested by the insurer, provided that the insured portion of the total outstanding credit contracts does not exceed €200,000 per insured. If the bank asks for a health questionnaire, you are therefore entitled to refuse it, the bank cannot legally impose it on you.
Regarding the second part of your question, it is better not to lie on your borrower insurance declaration. Indeed, article L113-8 of the insurance code provides for the nullity of the insurance contract if it appears that to specific questions the insured has provided deliberately misleading answers. It is extremely dangerous, it is really better not to lie. When you make a false statement to the insurance, the insurer has the option of not taking charge of your claim and not returning the contributions collected, confirms Ccile Roquelaure, spokesperson for the broker Empruntis. Better to avoid lying, and simply refuse to answer the health questionnaire.
Real estate credit: what are you likely to lie on your borrower insurance statement?