What must be ensured if the creditor pays all premiums for the insurance?

When a creditor pays all premiums for an insurance policy, it is crucial to ensure that all eligible debtors are insured. This is important because the insurance serves as protection for the creditor's interests; if a debtor passes away or becomes incapacitated, the debt owed to the creditor could potentially remain unpaid. By insuring all eligible debtors, the creditor secures a mechanism for the collection of debts, providing reassurance that there are funds available to cover any outstanding obligations.

This approach also emphasizes the responsibility of the creditor to manage risk adequately. Insuring all debtors means that each individual’s risk is accounted for, helping to protect the overall financial stability of the creditor's lending operations. Moreover, insuring only a portion of debtors would leave gaps in coverage, which could result in financial losses if those not covered face unforeseen circumstances.

The remaining options are not as relevant to the primary concern of ensuring complete coverage for financial protection.