Credit insurance provides coverage for which of the following parties?
A)a lender who is not repaid by borrowers
B)an investor who experiences stock market losses
C)a borrower who files for bankruptcy because of a job loss
D)an employer that loses business because of labor union strikes

Question

Quizplus · Accepted Answer

Credit insurance is designed to protect the lender or creditor. It provides coverage in the event that the borrower is unable to make their payments due to reasons such as job loss, disability or death, and the lender experiences losses as a result. Credit insurance is not designed to protect investors, borrowers, or employers.

Credit Insurance Provides Coverage for Which of the Following Parties