Home Foreclosures: 7.2.4.2 Credit Insurance Basics
“Credit insurance” refers to a group of insurance products sold in connection with a loan, credit agreement, or credit card account. The credit insurance is ancillary to the main product being sold, the loan itself. The credit insurance agreement is a three party transaction involving the borrower, the lender, and the credit insurer. The credit insurer typically sells a group policy to the lender who, in turn, sells credit insurance in connection with the making of individual loans or credit card accounts with borrowers.