What Is Commercial Credit Insurance?

General commercial credit insurance is also called domestic credit insurance. The credit insurance is based on the buyer's credit of the credit buyer in domestic trade, the buyer's credit that accepts prepayment, and the debit credit in lending activities. It means that in business activities, one party who is the right holder requires the insurer to treat the other party as the assured, and undertakes insurance that causes the right holder to suffer loss of commercial interests due to the credit risk of the assured.

General Commercial Credit Insurance

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General commercial credit insurance is also called domestic credit insurance. It is based on the buyer's credit in the domestic trade

General commercial credit insurance is also called domestic credit insurance. It means that in business activities, one party who is the right holder requires the insurer to treat the other party as the assured, and undertakes insurance that causes the right holder to suffer loss of commercial interests due to the credit risk of the assured. The subject matter covered by commercial credit insurance is the commercial credit of the assured. The actual content of this commercial credit is specified in the insurance contract through the methods specified, and the insurance amount is determined according to the subject value of the commercial contract between the parties. If the insured happens

Domestic credit insurance generally covers wholesale business, not retail business; it covers short-term commercial credit risk for 3-6 months, and does not cover long-term commercial credit risk. The main types of insurance are: credit sales credit insurance, loan credit insurance and personal loan credit insurance.

General Commercial Credit Insurance Credit Sales Credit Insurance:

It is a kind of credit insurance business that provides credit guarantee for deferred payment or installment of domestic commercial trade. In this kind of business, the insured is a manufacturer or supplier, and the insurer underwrites the credit risk of the buyer (that is, the obligor). The purpose is to ensure that the insured (that is, the right holder) can recover the credit sales on time and protect commercial trade. Smoothly.

General commercial credit insurance

It is insurance that the insurer guarantees loan contracts between banks or other financial institutions and enterprises and underwrites their credit risks. Under the conditions of a market economy, loan risks exist objectively. The reasons include both factors such as poor management of the enterprise or decision errors, and the impact of disasters and accidents. These factors may cause the loan to fail to return safely, and it is necessary to establish a corresponding loan credit insurance system to ensure it.

General Commercial Credit Insurance Personal Loan Credit Insurance:

Refers to credit insurance where the financial institution suffers economic losses due to the debtor's failure to perform the loan contract when the financial institution makes a loan to a natural person. It is a special business for foreign insurers to underwrite for individuals. Due to the wide variety of personal circumstances, scattered living, and different insurances, insurers must conduct a comprehensive investigation and understanding of the purpose, operating conditions, daily credibility, and private property of the lender's loan in order to start such a business. Lenders are required to provide counter-guarantees, otherwise they cannot be underwritten lightly.