Property credit insurance: what is the purpose of the Aeras agreement?

Verified 18 May 2022 - Directorate for Legal and Administrative Information (Prime Minister)

Before granting a loan, the bank requires the borrower to have insurance. In this situation, if you have or have had a aggravated health risk because of illness or disability, the convention Aeras: titleContent automatically applies. In particular, the Convention requires the insurer to right to be forgotten and one reference grid. But it doesn't require him to make you an insurance proposal.

The Aeras Convention applies when the insurer requires the borrower to provide health information (questionnaire or medical examination) in order to provide borrower insurance.

Please note

from 1 june 2022, the insurer may not require any information on the health of the borrower where the following 2 conditions are met:

The loan amount is less than or equal to €200,000 by borrower
The loan is terminated before the borrower's 60th birthday

A person has a aggravated health risk if they are ill or have been ill and have a higher than average risk of disability or death.

The Aeras Convention establishes a right to be forgotten for the person who has been diagnosed with cancer or hepatitis C.

This person does not have to declare these diseases when applying for insurance if the following conditions are met:

The treatment regimen has been finished for at least 5 years and there has been no relapse
The future insurance contract shall end before the age of 71 of the applicant

Warning

the consequences of the disease falling within the right to be forgotten must be reported to the insurer.

The Aeras Convention defines a reference grid listing certain diseases.

These are diseases which the applicant must declare when applying for insurance, but for which the insurer is not entitled to apply a extra premium or a exclusion guarantee.

They may also be diseases which the applicant must declare when applying for insurance, and for which the insurer may carry out one of the following actions:

Claim an additional premium, but not exceeding a maximum amount
Impose warranty limitations
Subject the insurance contract proposal to certain conditions

The reference grid shall apply only to insurance contracts which satisfy the following two conditions:

Credit of up to €320,000 (excluding bridge loans) to finance a principal residence
Credit repaid no later than 70 years of age of the applicant

Reminder

from 1 june 2022, the insurer may not require any information on the health of the borrower where all of the following conditions are met:

The loan amount is less than or equal to €200,000 by borrower
The loan is terminated before the borrower's 60th birthday

If your medical condition does not allow you to obtain an insurance proposal under standard conditions (1^er level of analysis), your request is forwarded to a 2^e level of analysis. Some applications can be the subject of a 3^e level of analysis.

Please note

1st and 2nd levels of analysis: medical questionnaires

When you apply for borrower insurance from your bank or other insurer, they must provide you with a specific information document:

Document on informing applicants for borrower insurance when they present an aggravated risk on account of their state of health or disability

You must complete a simplified health questionnaire (1^er examination level).

If your health condition does not allow you to be insured at standard rates and conditions, you must complete a detailed health questionnaire (2^e examination level). The insurer's doctor may ask you for medical documents (examinations carried out, reports, etc.).

At this stage, there are 3 possibilities:

Either you get a proposal for an insurance contract, valid for 4 months. The insurance contract that he offers you can incorporate a extra premium or a exclusion guarantee.
Either your file is automatically forwarded to 3^e examination level.
Either your insurance claim is denied. If you consider that the rules of the Aeras Convention have not been applied, you can refer the matter to the Mediation Commission of the Aeras Convention. You can go to another insurer, because not everyone has the same approach to aggravated health risk. For this, you can ask a Association signatory to the Aeras Convention. You can search with your bank for alternative guarantee to allow you to still have access to credit.

3rd level of analysis: analysis of your medical situation

Your request is subject to a 3^e level of analysis if you meet the following 2 conditions:

You will be under 71 at the end of the future insurance contract
The credit to be insured shall not exceed €320,000(excluding bridge loans)

At this stage, there are 2 possibilities:

Either your request is accepted. The insurer informs you. They can offer you an insurance contract with an extra premium or a guarantee exclusion. However, a scheme for reducing insurance surcharges is provided for in the Aeras Convention. It limits the insurance premium (or contribution) payable when the borrower has modest incomes.
Your application is refused. The insurer must inform you of the reasons for this refusal. If you consider that the rules of the Aeras Convention have not been applied, you can refer the matter to the Mediation Commission of the Aeras Convention. It is possible to search with your bank for a alternative guarantee to allow you to still have access to credit.

If the terms of the Aeras Convention have not been applied, in particular if the right to be forgotten has not been respected, you can enter the Aeras Convention Mediation Commission.

It is responsible for finding an amicable settlement and facilitating dialog between your doctor and the insurer's medical adviser.

Who shall I contact

Aeras Convention Mediation Commission
61 Taitbout Street
75009 PARIS

The Mediation Commission shall not be competent to decide on the following points:

Limitations and Disclaimers
Level of the insurance premium or premium surcharge, as they are covered by the commercial policy of the insurer
Decision and conditions for granting credit, as they are the responsibility of the creditor
Credit when already in place

The banks have undertaken, in the event of a refusal of insurance, to accept alternative solutions to secure a mortgage. In particular: