What is required from the borrower if a bank imposes credit insurance as a loan condition?

When a bank imposes credit insurance as a condition for a loan, it typically requires the borrower to agree to buy the insurance. This is because the credit insurance serves as a form of protection for the lender in case the borrower defaults on the loan. It ensures that the bank can recover some of its losses in such an event.

However, while the bank can require the borrower to have credit insurance, it cannot dictate from which provider the borrower must purchase this insurance. Borrowers generally have the right to shop around and select a provider that offers coverage that meets the lender's requirements, giving them more control over their financial decisions. Thus, the correct answer reflects this requirement for the borrower while also highlighting the importance of consumer rights in choosing an insurance provider.