Glossary

Adverse information

any event the Insured may become aware of, which has led or may lead to a deterioration of the Buyer’s financial situation.

Buyer

a legal entity registered in Russia in accordance with the Russian legislation or a legal entity having its registered office outside Russia.

Commercial credit

any amount payable in future by the buyer in respect of goods delivered or service provided by the Insured in accordance with the provisions of the Contract.

Contract

a legally valid and enforceable agreement between the Insured and a buyer for the sale of goods or the rendering of services on credit terms.

Credit Limit

is an amount assigned for each buyer within which the Insurer shall be obliged to pay an indemnity in case of the occurrence of an Insured Event.

Date of Loss

a) in the event of a loss due to Insolvency, the date of the Insolvency of the buyer;
b) in the event of a loss due to another Insured Event, the end of the relevant Waiting Period.

Datum line

an amount below which buyers are not to be included in the insurance policy.

Debt

any and all amounts owed to the Insured by a buyer in accordance with terms and conditions of a Contract.

Due date

date by which the buyer must pay its debt according to the sales contract or invoice.

Insured Event

1) failure by the Buyer to meet its obligations to repay commercial credit upon expiry of Waiting Period provided for herein;
2) failure by the Buyer to meet its obligations to repay commercial credit as a result of its Insolvency (Bankruptcy).

Maximum payment terms

the longest credit period approved for a buyer under the policy.

Maximum Liability (Sum Insured)

the total amount, which the Insurer is liable to pay under the indemnity provisions of the Policy, in respect of Insured Events.

Period of Cover

period within which commercial credits are granted by the Insured and which shall be indemnified by the Insurer in accordance with the terms and conditions.

Self retention

a percentage of the Insured Loss has to be borne by the Insured.

Waiting Period

a period of time in calendar days upon expiry of which buyer’s failure to fulfill its financial obligations under the Contract resulting in Insured Loss can be acknowledged as the Insured Event.

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