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      Question

      An insurance cover that is linked with credit activities

      and aims to protect the credit is called?
      A claims Correct Answer Incorrect Answer
      B Retrocession Correct Answer Incorrect Answer
      C Retrospective Rating Correct Answer Incorrect Answer
      D credit life Correct Answer Incorrect Answer
      E None of these Correct Answer Incorrect Answer

      Solution

      Credit life insurance is a type of life insurance policy designed to pay off a borrower's debt if the borrower dies. The face value of a credit life insurance policy decreases proportionately with the outstanding loan amount as the loan is paid off over time, until both reach zero value.

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