1. Loan credit insurance refers to the insurance that the insurer guarantees the loan contract between banks or other financial institutions and enterprises to cover the credit risk of borrowers.

2. In loan credit insurance, the lender (i.e. creditor) is the applicant. When the policy is issued, the lender becomes the insured.

3. When the enterprise cannot repay the loan, the creditor can get compensation from the insurer. After receiving compensation from the insurer, the lender must transfer the creditor's rights to the insurer, and the insurer will recover from the borrower.