Equivalence of cover (borrower insurance)
The condition an outside borrower insurance policy must meet to be accepted by the bank, assessed since 2015 against a closed list of criteria published by each lender.
The right to choose one's borrower insurance means little unless the bank cannot reject a competing policy on the grounds that it protects less. Equivalence of cover organizes that comparison. Under the aegis of the Financial Sector Advisory Committee, banks and insurers agreed on a list of eighteen criteria covering death, total and permanent loss of autonomy, incapacity and disability, from which each bank chooses at most eleven, plus four for job loss, and publishes them. The policy presented by the borrower must offer at least an equal level on each selected criterion, not overall: a policy that is better on one point does not offset one that is weaker on another. The bank has ten business days to respond and must give reasons for any refusal, citing the missing criteria.
The Financial Sector Advisory Committee opinion of January 13, 2015 set the list of equivalence criteria, applicable from October 1, 2015, from which date each bank had to publish its own selection on its website and hand it to the borrower with the standardized information sheet.
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