Borrower insurance delegation (Lagarde Act)
The borrower's right, opened by the Lagarde Act of 2010, to choose home loan insurance from an insurer other than the one offered by the bank, provided the cover is equivalent.
Delegation allows a borrower not to join the group contract negotiated by their bank and to present an individual policy bought elsewhere. The bank may refuse it only if it does not offer a level of cover equivalent to its own, and it may neither change the loan rate nor charge a fee for accepting it. The stakes are economic: the group contract pools all borrowers at a rate often based on the initial loan amount, whereas an individual policy prices by age, health and outstanding balance, which favors young, healthy borrowers. Delegation thus opened a market where banks held most of the premiums. It was extended by annual cancellation in 2018, then by cancellation at any time under the Lemoine Act of 2022.
Act No. 2010-737 of July 1, 2010, known as the Lagarde Act, applies to loan offers issued since September 1, 2010; it was supplemented by the Hamon Act of 2014, which allowed substitution during the first twelve months of the loan.
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