3. Sorry, that is incorrect.

The correct answer is "True."

Moreover, most types of credit insurance are voluntary. An important exception is property or hazard insurance. A creditor may require that you maintain this kind of insurance to cover the costs of repairing or replacing property (such as your home or auto) that serves as collateral for a loan. And in those instances in which insurance is required, a bank cannot condition approval of the loan on the purchase of insurance from the bank or an affiliate. See full story...

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