When carrying out a financial transaction of a credit redemption nature, the borrower must be able to benefit from advice on the option of an optional loan insurance cover, from the financial adviser in charge of the instruction of the borrower.
Broker repurchase of credit and its duty of advice in credit insurance
The insurance offered and the associated guarantees must exactly match the needs of the borrower.
Advice must be given on the insurance form to be taken out according to his age, his professional situation and his state of health.
- The subscriber’s attention must be drawn to the various conditions of eligibility that must be fulfilled on the day of membership.
The objectives of the borrower insurance is to protect the borrower and his credits (depending on the product, the profile of the borrower and the options chosen) in case of:
- Death and disability
- Interruption of Work for Accident or Sickness
- Job Loss
Secure the lender by taking over all or part of the outstanding amount by the insurance company in the event of a claim covered by the insurance contract.
Know the operation of the borrower insurance contract
The subscription of a borrower insurance contract is done by signing a membership form issued by the insurance company itself.
The monthly cost is calculated as a percentage (%) depending on the type of loan contracted:
- On the outstanding amount of a revolving credit
- On the capital borrowed from a depreciable credit
In the event of a claim, compensation is paid by the insurer to the financial company and according to the options chosen.
The duration of the insurance contract (coverage) is interrupted:
- at the age limit of the guarantee,
- the termination of the insurance contract by the insured or the insurer,
- upon the death of the subscriber,
- or at the end of the credit agreement.