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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