Your bank can refuse a delegated insurance policy for one reason only: it fails to meet one or more of the equivalence-of-cover criteria listed in its standardised information sheet (FSI). The refusal must be in writing, reasoned, sent within ten working days and list all the missing criteria at once. If the refusal is justified, have the policy corrected and submit the request again; if it is not, challenge it with the bank, then with the ombudsman.
The only valid ground: an FSI criterion not met
Since the Lemoine law (the French law of 28 February 2022 allowing borrowers to switch insurance at any time), equivalence of the level of cover is the only condition for an insurance substitution. The CCSF (Comité consultatif du secteur financier, the French financial sector advisory committee) set a list of 18 criteria, plus 4 for job loss; each bank selects at most 11, plus the job-loss criteria if it requires that cover, and lists them in the FSI provided with the loan offer. The bank compares your new policy against those criteria, and those alone.
Justified refusals most often concern specific points:
- a waiting period longer than required, for example 180 days when the FSI asks for 90 days;
- an exclusion of back or psychological conditions without hospitalisation, when the FSI requires them to be covered;
- a missing cover, such as IPT (permanent total disability) or ITT (temporary total incapacity for work) when the bank requires them;
- indemnity-based compensation when the FSI requires lump-sum cover;
- a share insured or a duration of cover lower than that of the loan;
- an exclusion of your occupation or of a sport that the FSI requires to be covered.
Grounds that do not justify a refusal
- The policy comes from another insurer or is not a "partner" of the bank: that is precisely what the law allows.
- A criterion not in the FSI: the bank cannot rely on a requirement it did not list in the sheet.
- A change to the rate: the bank may not change the rate terms set out in the loan offer in return for its acceptance.
- Fees: acceptance and the amendment to the loan contract are free; no review, arrangement or amendment fee may be charged.
- Silence: no answer more than ten working days after receipt of the complete request is not a valid refusal, it is a breach.
- A vague refusal ("cover not equivalent" with no further detail) or one drip-fed criterion by criterion, in several successive letters.
Deadlines and content of the refusal: what the bank must comply with
The bank has ten working days from receipt of the complete request, that is, in practice, accompanied by the membership certificate and the general conditions of the new policy. If it accepts, it issues a free amendment to the loan contract. If it refuses, it must do so in writing, give reasons for its decision and state all the criteria not met, at once, so that you can correct everything in one go. Failure to comply with these obligations is punishable by an administrative fine. Keep proof of the date your request was received: a registered letter with acknowledgement of receipt, or the time stamp of the online banking area.
How to correct the policy and submit the request again
A reasoned refusal is first and foremost a list of corrections to make. Send it to the new insurer or to your intermediary, who adjusts the policy criterion by criterion:
- Exclusion to be lifted: many policies offer an exclusion buy-back, for example for back and psychological conditions or for a sport, in return for a surcharge depending on the policy.
- Waiting period to be adjusted: from 180 to 90 days if the FSI requires it, which slightly increases the premium.
- Missing cover: add IPT, IPP (permanent partial disability) or ITT, or switch to lump-sum cover.
- Occupation or sport: choose an option or a policy that covers your situation; see our guide to high-risk occupations and sports.
Then check that the saving is still real once the policy has been completed: a surcharge can narrow the gap, and the saving calculation needs to be redone. Then submit a complete request again, with the new membership certificate and the updated conditions: the bank once again has ten working days to answer.
Your remedies against an unjustified refusal or silence
- Written complaint to the bank: contact the complaints department, stating the date your request was received, the FSI criteria and the points on which the refusal seems unfounded to you.
- Banking ombudsman: if the answer does not satisfy you, refer the matter to the bank's ombudsman. The procedure is free; the contact details appear in the loan offer and on the bank's website.
- Report to the ACPR (Autorité de contrôle prudentiel et de résolution, the French banking and insurance supervisor) via Assurance Banque Épargne Info Service (ABEIS), and to the DGCCRF (the French consumer protection authority) via SignalConso. A report does not settle your individual case but alerts the supervisory authorities.
- Dispute with the insurer (rather than the bank): La Médiation de l'Assurance, the insurance ombudsman.
The traps to avoid
- Cancelling the old policy too early: until the bank has accepted in writing and issued the amendment, keep the old policy. Cover must be continuous, and the loan must never be left uninsured.
- Setting an effective date too soon for the new policy: leave it open or allow a few weeks, enough time for the answer and a possible second submission.
- Accepting a chargeable amendment or a change to the rate: refuse them in writing.
- Reducing cover to lower the price: it is the leading cause of justified refusals.
- Forgetting the scope of the law: it covers mortgages granted to private individuals; business loans are excluded, and for a loan taken out by an SCI (a French property-holding company), whether substitution is possible needs to be checked in the offer and with the bank.
What the firm does
We read the bank's refusal against its FSI, we distinguish what is justified from what is not and, if a criterion is missing, we put several insurers in competition to obtain a policy with at least equivalent cover. We then prepare the new submission to the bank and follow its answer through to the amendment. The review is free and without obligation.
- The only valid ground for refusal is an FSI criterion not met.
- The refusal must be in writing, reasoned, sent within ten working days and list all the missing criteria at once.
- The bank may neither change the rate, nor charge fees, nor refuse a policy because it comes from elsewhere.
- A justified refusal can be corrected: exclusion buy-back, adjusted waiting period, added cover, then a new submission.
- Never cancel the old policy before the bank's written agreement and the amendment.