Glossary

Creditor group life insurance is a form of group life insurance issued to a creditor (e.g., bank, credit union) to insure the lives of its debtors in the amount of their unpaid debt.

In reinsurance, credit carry-forward refers to the transfer of credit or profit from one accounting period under a long-term reinsurance treaty to the succeeding accounting period.

A credit default swap is a contract in which the buyer makes one or a series of payments to the seller in exchange for a promise that, if a specific credit instrument, such as a bond or loan, goes into default, the seller will pay the buyer a certain sum.

Credit for reinsurance is a statutory accounting procedure permitting a ceding company to treat amounts due from reinsurers as assets or reductions from liability based on the status of the reinsurer.

Credit health insurance is insurance designed to cover a borrower's indebtedness with the creditor receiving the policy benefits to pay off the debt if the borrower becomes disabled or dies accidentally.

Credit insurance is coverage against insolvency of a customer, which provides protection against payment default on loan, interest, or scheduled payments.

Credit life insurance refers to term life insurance that pays off the balance of a loan if the borrower dies.

Credit monitoring is a service provided within the privacy notification and crisis management insuring agreement of a cyber and privacy insurance policy.

A credit report is an underwriting tool used by insurers.

Credit risk refers to the possibility that either one of the parties to a contract will not be able to satisfy its financial obligation under that contract.