What is the maximum amount of insurance that can be issued under a credit insurance policy?

The maximum amount of insurance issued under a credit insurance policy corresponds directly to the amount of indebtedness. This type of policy is designed to protect lenders by ensuring that, in the event of the borrower's death or disability, the outstanding debt is covered. By limiting the coverage to the amount of the indebtedness, the policy provides a safety net for both the borrower and the lender, ensuring that the loan is paid off without providing excess benefit to the borrower’s estate or their beneficiaries.

Coverage amounts that exceed the indebtedness would not align with the purpose of credit insurance, which is fundamentally about managing risk associated with specific debts. Thus, the correct response reflects the principle that the insurance amount should equal the actual debt, ensuring that it addresses the financial obligation without providing surplus coverage.