Louisiana Bail Bonds Practice Exam

Which of the following is included in Limited Line Credit Insurance?

1. Property insurance for homeowners

2. Health insurance for employees

3. Credit life and mortgage disability insurance

4. Comprehensive auto insurance plans

The correct answer is: Credit life and mortgage disability insurance

Limited Line Credit Insurance specifically refers to insurance products that provide coverage related to credit transactions. This type of insurance is designed to protect lenders and borrowers in the context of credit and loans. Credit life insurance provides coverage that pays off a borrower's outstanding loan balance in the event of their death. Mortgage disability insurance offers protection that helps pay mortgage payments if the borrower becomes disabled and is unable to work. Together, these types of insurance are directly related to credit and mortgage obligations, which is why this choice is the correct answer. The other options do not fall under the Limited Line Credit Insurance category. Property insurance for homeowners and comprehensive auto insurance plans cover broader risks associated with property and vehicles, while health insurance for employees pertains to medical coverage and does not relate to credit specifically. Thus, C stands out as the answer that accurately aligns with the definition of Limited Line Credit Insurance.