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Financial Guarantee Insurance

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Financial guarantee insurance
Insurance created to cover losses from specified financial transactions.

Financial Guarantee Insurance
An insurance policy covering a lender from liability resulting from the failure of the borrower to repay the loan. It may also cover losses from a decrease in interest rates to the detriment of the lender. Financial guarantee insurance may cover different types of loans, but, in most U.S. states, usually does not include mortgages or certain credit lines. It is similar to a surety or a co-signed loan.


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