Credit insurance
Disclosure requirements for loan insurance
By Charlotte GAUCHON19 April 2025The relationship between a borrower and his bank turns into an obstacle course when a dispute arises over borrower's insurance. This protection, which is often required in practice when taking out a mortgage, suffers from a chronic lack of information. This complex mechanism involves three players: the insurer who draws up the policy, the bank that offers it, and the borrower who takes out the policy. Case law has gradually strengthened the information requirements to protect the borrower. The pre-contractual information obligation The pre-contractual information obligation is the borrower's first line of protection. The Insurance Code and case law require the underwriter (the bank) to provide clear, precise and comprehensible information on the cover offered. In a ruling handed down on 5 April 2018 (Cass. 1re civ., 5 Apr. 2018, no. 13-27.063), the Court of Cassation stated that the standardised information sheet cannot be equated with the contractual documents. It must enable the borrower to understand the essential features of the contract. This...
Loan insurance: legal analysis of a complex package
Credit insurance, Credit and consumer lawLoan insurance is an essential part of taking out a property loan, but it raises a number of legal questions. Between protection for the lender, guarantees for the borrower and contractual entanglements, this insurance deserves an in-depth examination. The legal basis and anatomy of an atypical contract Loan insurance belongs to the category of insurance that protects the...The life and end of the loan insurance contract
Credit insurance, Credit and consumer lawMortgage borrowers are very familiar with creditor insurance, which is often seen as a simple formality when taking out a loan. But this is a simplistic view. This complex contract deserves special attention, both during its term and when it is terminated. Special features of loan insurance Loan insurance is a complex contract that requires special attention...Credit insurance: definition, legal nature and developments
Credit insurance, Credit and consumer lawThe business world is built on trust. However, this trust is sometimes misplaced. Credit insurance offers companies a means of protecting themselves against the insolvency of their customers. This tool remains little known to the general public, but is a strategic element for many businesses. Definition and usefulness of...Credit insurance vs bond insurance: understanding the differences
Credit insurance, Credit and consumer lawThese two insurance mechanisms protect commercial transactions, but they operate differently. Confusing them can lead to costly strategic errors for businesses. Credit insurance: main features Credit insurance protects the creditor-seller against the risk of non-payment. Creditors take out this insurance to protect themselves against the insolvency of their customers. According to V....European law and credit insurance: gradual recognition
Credit insurance, Credit and consumer lawUntil the 1970s, the legal status of credit insurance in France was uncertain. European law has broken down these artificial boundaries, allowing it to develop as a genuine insurance contract. How did this development come about? What are the implications for businesses? Community competence in credit insurance The Treaty on European Union...Coface and export credit insurance: a practical guide for exporters
Credit insurance, Credit and consumer lawNavigating the stormy waters of international trade without adequate protection exposes your business to considerable risk. For an in-depth understanding of credit insurance, from its definition to its legal nature and evolution, we need to look at its specific features. Export credit insurance is an essential shield to protect your business against...Risks covered by export credit insurance
Credit insurance, Credit and consumer lawInternational transactions expose companies to particular risks. Between the time goods leave the country and the time payment is received, a number of events can jeopardise the commercial transaction. Political risk or "country risk" Political risk, now commonly referred to as "country risk", is one of the most common types of...Securing your export operations with credit insurance
Credit insurance, Credit and consumer law```html Exporting opens up tempting business prospects, but involves specific risks. How do you protect your cash flow when a foreign customer doesn't pay? Export credit insurance, particularly through Coface, is an essential tool for companies expanding internationally. Export credit insurance policies: three formulas to suit...Internal credit insurance: protecting receivables on the domestic market
Credit insurance, Credit and consumer lawCompanies that sell on credit are exposed to the risk of non-payment. This risk, which is often overlooked, can jeopardise their cash flow and even their survival. Internal credit insurance offers protection against this threat. Scope of internal credit insurance Traditional insolvency insurance Internal credit insurance mainly protects against the insolvency of debtors. However, this concept...
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