When must a credit insurance be delivered to the debtor?

The correct answer indicates that credit insurance must be delivered to the debtor at the time the indebtedness is incurred. This is crucial because credit insurance is designed to protect both the lender and the borrower from the risk of default due to unforeseen circumstances, such as death or disability. By delivering the insurance at the time the debt is incurred, the debtor is informed and protected from the start of their financial obligation. This approach ensures that the debtor understands the implications of the insurance and has the coverage in place from the moment they take on the debt, which is essential for both financial planning and risk management.

The timing of delivery is significant for legal compliance and consumer protection as well, ensuring that the debtor is aware of their options and coverage right when they enter into a financial agreement.