Section 13: Insurance policy
consolidated text (as at 2016, amended since). juris shows the text as it was consolidated; it does not confirm that this is the law in force today.
13. Insurance policy
(1) Where an immovable property is given as security for the grant of a
credit facility, the lender may require the borrower to take out an insurance
policy to guarantee the repayment of any amount due to the lender in case
the borrower is unable to honour his obligations because of death or permanent disability.
(2) Where an insurer grants a credit facility to a borrower and the latter is
required to take out a policy of insurance pursuant to subsection (1), it shall
not be lawful for the insurer to require the borrower to take out another life
insurance policy in respect of that credit facility.
PART IV – PROTECTION OF BORROWERS
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Questions this section answers
- Can my lender require me to take out life insurance if I give property as loan security?
- Can an insurer force me to take out a second life insurance policy for the same loan?