chapter 20 michael solomich - Chapter 20 Mike Solomich...

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Chapter 20 Mike Solomich 2/16/09 1. How do you account for the fact that collections are an inherent part of any credit business? Collections are an inherent part of any credit business because any business that offers buying products on credit needs a collection department. For example, ff a person doesn’t make payments on goods on credit, the business will lose money and they need to collect that money. 2. What is the purpose of consumer credit insurance? How does it help both the debtor and the creditor? The purpose of consumer credit insurance is designed to make payments on debtors behalf in the event of death, sickness, disability or lost income. It helps the debtor make payments so there credit stays in tact, and the creditor is helped because they still get there money. 3. Explain the two main categories of consumer credit insurance? The two main categories of consumer credit are decreasing term insurance which is insurance that decreases as the debt increases, and level term insurance which remains in force as long as the debt is in affect. 4. Explain why states should regulate this type of insurance.
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This note was uploaded on 11/15/2009 for the course ENG 401 taught by Professor Mess during the Spring '09 term at Northwood University, Michigan Campus.

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chapter 20 michael solomich - Chapter 20 Mike Solomich...

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