[C191]

credit insurance

1) A form of life and health insurance protecting the lender against loss from death or disability of the borrower, often written as group insurance. The coverage can be written to protect the interest of the creditor only (single interest), or the interests of both creditor and debtor (dual interest).

(See single interest cover (or insurance) and margin account insurance.)

2) Protection against loss caused by the insolvency of a firm's customers in excess of its normal credit losses; written by a few specialty casualty insurers.

(See floor plan insurance.)