QUESTION $3(10$

MARKS$)$

To offset the circumstances of a debtor not paying, or paying late, there are several

types of insurance that can be purchased.

REQUIRED:

When dealing with credit insurance what do the following terms

mean?

a$)$ Commercial risk. $(2)$

b$)$ Insolvency cover $(2)$

c$)$ Protracted default. $(2)$

d$)$ Recoveries$/$salvage $(2)$

e$)$ Wait period $(2)$

Total $=10$