- Home
- Bankruptcy and Bankruptcy Code
- Business Entities
- Departmental Operations
- Credit Practices
- Collection Practices
- Financial Analysis
- Financing Methods
- International Credit
- Customs Regulations
- Exporting and Importing
- Financing International Sales
- International Banking
- Letters of Credit
- The Three Cs of International Credit
- Denied Parties; Export Administration Regulations
- Letter of Credit Discrepancies
- Ex-Im Bank
- Export Credit vs International Credit
- Letter of Credit Instructions
- Credit Insurance; and the Foreign Credit Insurance Association
- The Foreign Corrupt Practices Act
- The Growth of International Credit
- Credit Insurance; Trade Credit Insurance; Credit Risk Insurance; International Credit Insurance
- Export Credit Risk; International Commercial Risk, Export Trade Credit Risk
- Forfeiting; International Financing
- International Credit Policy; Open Account vs. Letter of Credit
- Foreign Financial Statement Analysis; IASB; International Accounting Standards Board
- Marine Cargo Insurance; Cargo Insurance; Ocean Marine Insurance
- International Payment Terms; Methods of Payment for International Sales
- Political Risk Insurance; Export Credit Insurance
- Silent Confirmation
- Sovereign Risk; Political Risk; Country Risk
- Uniform Customs and Practice for Documentary Credits; UCP 600
- Gathering Information about Foreign Credit Applicants
- International Open Account Terms
- Common Reasons for International Customer Payment Default
- Analyzing Foreign Financial Statements
- Laws and Regulations
- Payment Methods
- Performance Measures
- Security Instruments
- Career Management, and Job Change
- Credit Website Tools
- Upcoming Educational Events
- Credit and Collections Tools and Tips
- Tips on Creating Better Emails
- Generating Effective Credit Correspondence
- Exporting
- Accounting
Credit Insurance; and the Foreign Credit Insurance Association
Trade credit insurance minimizes the risk of non-payment due to financial, economic, or in some cases political uncertainties. FCIA Management Company Incorporated (FCIA) provides credit insurance that protects export sales, and in some cases domestic sales as well. Trade cedit insurance can be a cost-effective mechanism for transferring credit risk. Insurance [remiums are generally charged as a percentage of sales. Trade credit insurance premium rates are based on a number of factors including country risk, customer risk, the length of payment terms, and the trade creditor's loss experience.
The Foreign Credit Insurance Association ("the Association") was formed in 1961 and was a pioneer in export credit insurance in the United States. Great American Insurance Company backs credit insurance policies issued by the Association and serviced by the FCIA. The FCIA makes its products available through brokers as well as independent agents, many of whom are specialists in credit insurance and related financial products. FCIA products fall into the following four broad groups:
-
Export Credit Insurance Policies that insure exporters of goods and services against risks of non-payment by buyers located in foreign countries.
-
Domestic Credit Insurance Policies that insure sellers of goods and services against risks of non-payment by buyers in the U.S.A.
-
Special Risks Insurance Policies that insure exporters and sellers of goods against certain credit or political risks, as well as special contract risks.
-
Financial Institution Coverages Policies that insure financial institutions against select credit or political risks.
Coverage is available to U.S. businesses on their customers worldwide. For more information about FCIA, visit their website (http://www.fcia.com).
Edited by Michael C. Dennis. Mr. Dennis is an author and consultant. He can be reached by email at mcdennis13@yahoo.com