Excess-of-loss trade credit insurance policies

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Reference no: EM132000826

1. Trade credit insurance

is a form of credit life insurance arranged by financial institutions.

provides protection against a firm's normal credit losses losses

may only be written to cover individual accounts or on a portfolio of accounts.

none of the above.

2. "Excess-of-loss" trade credit insurance policies:

tend to have a large annual aggregate deductible.

require the insurer to assign a credit rating to each account that is covered by the policy.

are designed to provide protection for a normal level of credit losses.

are only used in domestic trade credit insurance.

Reference no: EM132000826

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