Loan guarantee insurance covers the risk that the insured (borrower) cannot repay the loan owed within the time limit stipulated in the loan contract. When the borrower fails to repay the loan on time, the insurer shall bear the repayment responsibility.

This type of insurance is established to cooperate with financial institutions to carry out personal consumption loan business, and is mainly suitable for personal housing consumption loans, personal automobile consumption loans and other loan businesses. At present, China mainly provides two kinds of insurance: personal automobile consumption loan guarantee insurance and personal housing mortgage loan guarantee insurance.

The insurer shall not be liable for the following circumstances:

(1) The insured fails to review the applicant and collect the loan according to the General Rules for Loans;

(2) Intentional behavior of the insured;

(3) Changing the contents of the loan contract or annex without the prior consent of the insurer.