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Credit Insurance Terminology
Annual Aggregate Retention:
Amount per annum which you retain for your own account pertaining to losses.
Conflict (outside South Africa):
The occurrence of way, hostilities, civil war, rebellion, revolution, insurrection or other disturbance outside the borders of South Africa.
Expropriation:
When goods or fund are confiscated or attached.
Franchise Loss:
An amount retained for your own account, when a claim occurs because of "something that has gone wrong" (a cause of loss),
Importation:
A law which restricts / controls / prevents the importance of goods into an insured country (your buyer).
Insolvency:
Any act of insolvency which is recognised by the South African courts.
Insured Debt:
The gross invoice value, excluding any form of tax, which is owed to the policyholder.
Insured Buyer:
Any buyer (your customer) on whom Credit Guarantee has granted cover in writing.
Insured Percentage:
The percentage of the amount of the Insured Debt that will be paid by Credit Guarantee. Ranges between 70 - 90%.
Maximum Liability:
Total amount of claims that may be paid (at its discretion) by Credit Guarantee to the insured in respect of Insured Debts during each insurance year.
Premium:
Amount payable to Credit Guarantee monthly / annually / upfront.
Protracted Default:
Failure to pay an Insured Debt within six months of due date of payment.
Repudiation:
Refusal of a buyer to accept goods arising from an insurable transaction.
Transfer:
Law restricting transfer of funds, beyond your control, back to South Africa.
The Insured:
You / the policyholder.
Credit Limit:
Limits granted by Credit Guarantee on your individual buyers, which is the maximum insured amount for which you may supply goods / services to them. Any deliveries made in excess of your credit limit are not covered by Credit Guarantee.
CregaLink:
An online access facility where clients can access Credit Guarantee's mainframe computer and obtain instant information on the state of policies, credit limit application and buyer information.
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