Question

What is the purpose of creditor-debtor groups in group insurance?

a.

To cover the outstanding loans granted to creditors

b.

To cover the outstanding loans granted to debtors

c.

To provide insurance benefits to creditors

d.

To cover the losses incurred by debtors

Answer: (b).To cover the outstanding loans granted to debtors Explanation:Creditor-debtor groups cover the outstanding amount of loans granted to debtors, and in case of the debtor's death, the claim amount goes towards repayment of the outstanding loan.

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Q. What is the purpose of creditor-debtor groups in group insurance?

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