credit insurance

credit insurance definition - business

credit insurance

  1. Insurance required of a borrower that pays the remaining balance of a loan in the event the borrower dies or becomes disabled. A lender is required to disclose to borrowers the terms and cost of credit insurance.
  2. Insurance coverage purchased by a manufacturer or service company that reimburses the insured for unpaid bills by its customers. Also called commercial credit insurance.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

Comments
Improve this definition.
Do you have more to add? Share your linguistic knowledge or observation.
/Register to save your comments.