In loan credit insurance, the lender (that is, the creditor) is the applicant. When the policy is issued, the lender becomes the insured.
When the enterprise cannot repay the loan, the creditor can get compensation from the insurer.
After obtaining compensation from the insurer, the lender must transfer the creditor's rights to the insurer, and the insurer shall exercise the right of subrogation.
The insured amount of loan credit insurance is all the money lent by the bank. When determining the premium rate, the insurer considers: the credit status of the enterprise; Management level and market competitiveness of enterprises; The term and purpose of the loan project; Different economic regions, etc.
Further reading: How to buy insurance, which is good, and teach you how to avoid these "pits" of insurance.