Lifetime and end of your credit insurance contract
In the event of a claim covered by your loan insurance contract, your insurer reimburses the bank. Depending on the circumstances, your contract may be terminated or extended.
The subscription rate of your loan insurance policy is not final. In fact, it is provided in certain loan insurance contracts that contributions are reviewed according to the results. The insurance premium may for example be increased following the occurrence of a major loss, or the contributions may vary during the repayment depending on the age of the insured.
In the event of a change in the situation of the insured
If the situation of the insured evolves (state of health, occupation or other), it is required to inform the insurance company within 30 days of this change. In the event that he does not do so, according to Article L 1123-9 of the Insurance Code, the insurer may reduce the amount of compensation paid “in proportion to the rate of premiums paid in relation to the rate of premiums that would have been due “.
- Renegociation of insurance borrower
In case of default
According to Article L 132-20 of the Insurance Code, in the event of failure to pay a monthly installment or part of the monthly payment within 10 days of its due date, the insurer may send the insured person a letter recommended in order to claim the amount due. In the event that the insured does not pay within 40 days of the date of sending the letter, the insurer may terminate the contract.
In the event of a late declaration of a claim
If the insured does not voluntarily or negligently declare a claim within the period specified in the contract, he may be deprived of the cover. According to article L113-11 of the Insurance Code, in case of delay of a declaration of loss, the insurer is entitled “to claim compensation proportional to the damage that the delay caused him”.