Final answer:
Regarding Credit Life Insurance, it's not typical for the debtor to be both policyowner and beneficiary. Normally, the creditor is the beneficiary to ensure that the loan is paid off in case of the debtor's death.
Step-by-step explanation:
The characteristic that is not typical of Credit Life Insurance is: D. The debtor generally is both policyowner and beneficiary. Credit Life Insurance is a specific type of policy designed to pay off a borrower's debt if the borrower passes away. The other characteristics mentioned:
- A. This insurance is normally Decreasing Term, and the amount of insurance reduces as the obligation reduces.
- B. The amount of the insurance benefit must not exceed the total amount of indebtedness.
- C. The insurance is either a form of individual coverage on the life of a debtor or a form of group insurance issued to a creditor providing coverage for debtors.
These are indeed accurate characteristics of Credit Life Insurance. However, it's common for the credit institution or lender to be the beneficiary of the policy rather than the debtor, which ensures the loan is paid off in the event of the debtor’s death.