credit insurance

English - English

Definition of credit insurance in English English dictionary: A guarantee to manufacturers, wholesalers, and service organizations that they will be paid for goods shipped or services rendered Applies to that part of working capital which is represented by accounts receivable; Insurance a seller may purchase which responds in the event a buyer does not pay for goods received; A policy that pays off the card debt should the borrower lose his job, die or become disabled The structure of protection for a revolving credit card debt is calculated each month to cover only the debt that existed at the last billing cycle; Commercial coverage against losses resulting from the failure of business debtors to pay their obligation to the insured, usually due to insolvency The coverage is geared to manufacturers, wholesalers, and service providers who may be dependent on a few accounts and therefore could lose significant income in the event of an insolvency; Insurance on a debtor in favor of a creditor to pay off the balance due on a loan in the event of the death or disability of the debtor Liability Insurance for abnormal loss from bad debts (LI,H); insurance for selling on credit; A policy that pays off the card debt should the borrower lose his job, die or become disabled; Insurance on a debtor in favor of a creditor to pay off the balance due on a loan in the event of the death of the debtor; Insurance against abnormal losses due to unpaid accounts receivable; Protection against past due, insolvency and political risk losses due to inability or failure of debtors of the insured to pay for goods sold or services rendered by the insured Additional services can include credit investigation, collection and recovery services and claim payments; Insurance against losses due to inability or failure of the insured's customers to pay for goods sold by the insured The insurance normally covers a specified percentage of each loss beyond a deductible indicated in the policy Insurance is available covering a variety of risks, e g , political and transfer risks ("country risks") and financial risks (called "commercial risks") Even "comprehensive" insurance, however, will not cover non-payment for contract disputes; coverage that pays off an outstanding loan in the event of the policyholder's death and/or makes loan payments if the policyholder is disabled; Insurance to protect against customers’ failure to pay their bills; Insurance that pays or pays off credit card debt should the borrower be unable to pay the debt as a result of the loss of employment, death or disability Generally, this protection covers only the debt that existed as of the last billing cycle; Optional coverage that pays off the balance of an outstanding loan in the event you become disabled, unemployed or die Exact coverage depends on the particular policy Variations include credit life (pays if you die), credit health or disability (pays if you get sick or become disabled) and credit unemployment insurance (pays if you involuntarily lose your job) Usually offered with credit cards, auto loans and mortgages; Health, life, accident, or dispurtion of income insurance designed to pay the outstanding balance of debt; Health, life, accident, or disruption of income insurance designed to pay the outstanding balance of debt; Insurance a lender offers or requires a borrower to purchase to cover the loan If the borrower dies or becomes disabled before paying off the loan, the policy will pay off the remaining balance Federal and state consumer protection laws require the lender to disclose to existing and potential borrowers the terms and costs of obtaining credit insurance because it can affect the terms of the loan; Insurance issued to a creditor to cover the health or life of a debtor for an outstanding loan Credit disability insurance is payable if the debtor becomes disabled, credit life insurance is payable if the debtor dies If the debtor becomes disabled or dies prior to repayment of the debt, the policy will pay the balance of the amount of debt outstanding The face value of credit life insurance policy decreases in proportion to the reduction in the loan amount until both equal zero; Insurance issued to creditors as protection against losses on outstanding loans due to the death or disability of the debtor