Common use of Creditor Insurance Clause in Contracts

Creditor Insurance. Generally up to a maximum of 75 percent of a secured loan unless agreement has a loan provision calling the loan due upon the death of owner/key person. Coverage should usually be applied for or in force on all major active partners. A business insurance questionnaire should be fully completed in all cases unless a detailed cover letter and company financial statements are submitted with the application. Each partner’s ownership percentage should be included and coverage should be proportional to the ownership interest. Company financial statements and copies of a buy/sell agreement are sometimes necessary to help establish a reasonable market valuation for the company and may be ordered at the underwriter’s discretion.

Creditor Insurance. Generally up to a maximum of 75 percent of a secured loan unless agreement has a loan provision calling the loan due upon the death of owner/key personperson . Coverage should usually be applied for or in force on all major active partnerspartners . A business insurance questionnaire should be fully completed in all cases unless a detailed cover letter and company financial statements are submitted with the applicationapplication . Each partner’s ownership percentage should be included and coverage should be proportional to the ownership interestinterest . Company financial statements and copies of a buy/sell agreement are sometimes necessary to help establish a reasonable market valuation for the company and may be ordered at the underwriter’s discretiondiscretion .