Which of the following statements about credit life insurance is correct?

Credit life insurance is designed to pay off a borrower's debt in the event of their death, ensuring that their loved ones are not burdened with the financial obligations associated with that debt. The correct statement is that it may be provided through a group or individual policy. This means that lenders can offer credit life insurance either as part of a group plan for multiple borrowers or as an individual policy tailored to a specific loan or borrower.

This flexibility in policy structuring allows consumers to choose how they want to secure their loans, making it accessible to a broader audience. Group policies may offer cost advantages and simplified enrollment, while individual policies can be customized according to the borrower's unique financial situation.

In contrast, credit life insurance is indeed regulated by state laws to ensure consumer protection. Additionally, it is not limited to certain loan amounts, as it can cover various amounts depending on the outstanding loan balance, which is why the other options do not accurately reflect the nature of credit life insurance.