SINGLE INTEREST INSURANCE
Single interest insurance is an insurance policy to protect lenders in case of a default. The security interest in stated property such as cars and properties of lenders or lessors are protected in the event of a customer default. In some cases, subprime borrowers or those borrowers that have marginal credit are mandated by financing companies to have single interest insurance. Most states are allowed to pass the cost of the policy to the borrower or customer.
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