It is an insurance policy to which mortgage borrowers sign up with the lender in order to take out a specific mortgage.
It refers to insurance policy based on certain condition.
This refers to insurance products, which some lenders will impose as a condition of their mortgage offer. This could mean that the lender insists that accident, sickness and unemployment cover is taken out or that combined buildings and contents insurance is taken.
An insurance policy that has to be taken out as a condition of obtaining a loan.