What is an arbitration award ?
This is a decision handed down by one or more arbitrators within the framework of an arbitration court in response to a claim referred to them by the two parties to a contract that includes an arbitration clause. To be enforceable as a local ruling, the award must have an exequatur (a written endorsement by the local judge authorizing the execution of a judgment from another country of jurisdiction) and the country must have ratified the New-York Convention.
What is a forced abandonment ?
This is the situation in which an investor has no longer access to his investments for a given period of time (minimum 6 months) because of political unrest.
What are bonds ?
These are sureties issued in connection with contracts between an exporter and his buyer to guarantee the fulfilment of the contract.
There are several types of bonds :
- Bid bonds
- Advance payment bonds
- Performance bonds
- Retention bonds
There are several types of bonds :
- Bid bonds
- Advance payment bonds
- Performance bonds
- Retention bonds
What is a boycott ?
This is the decision by a State or the instruction given by a State to one of its nationals, to suspend all commercial relations with a person, a group or a country in order to exert pressure or as a measure of retaliation.
What does causes of loss mean ?
There are events or decisions mentioned in the general conditions of the insurance policy that contribute directly and exclusively to the occurrence of the insured peril and trigger the application of the underwritten cover.
What is co-insurance ?
This is a policy underwritten by a pool of insurers who agree to share losses according to a predetermined ratio. The insurers are only liable for the share of the losses.
What is confiscation ?
This is the seizure of some or all of a company’s assets by a State.
What is a quotation ?
This is an estimated and a non-binding indication given by an insurer to a broker or a client concerning the premium rate and terms of cover.
What is deprivation ?
This is a forced occupation and appropriation of property, equipment or assets belonging to the insured, for a given period of time (at least 6 months) without legal justification.
What does selective discrimination mean ?
This is an administrative or regulatory decision or measure of a discriminatory nature which selectively targets the insured company and which is detrimental to its investments.
What is an endorsement to the insurance policy ?
This is an addendum to or enhancement of the policy conditions.
What is a public entity ?
This is an entity whose decisions are controlled by the State via the latter’s majority stake in its capital, its legal status or its institutional ties to said State.
What is an embargo ?
This is an administrative measure aimed at preventing the import or export of merchandise or the performance of a service to or from the country of the risk.
What is expropriation ?
This is the situation of being deprived of assets as a result of a decision by the government of the country of the risk.
What does inconvertibility mean ?
This is a government’s decision preventing the conversion of its currency to another currency.
What is business interruption ?
This is the loss of profit occuring during the policy period following the occurrence of a covered cause of loss.
What is limit of liability ?
This is the maximum amount the insurer will pay per policy.
What is nationalization ?
This is the expropriation pronounced by a legislative body to remove the owners or shareholders of industrial or trading companies, with transfer of their management authority to bodies representing the government and assignment of their assets to the State.
What is non-performance of a contract ?
This is the non-compliance with one or more obligations under the insured contract, decided in an arbitrary and unilateral basis by other party to the contract.
What is non-repossession ?
This is the impossibility of recovering machinery or equipment that the insured has made available to a trading partner to perform a contract.
What is non-transfer ?
This is the impossibility of making payments abroad for political or economic reasons.
What is the percentage insured ?
This is the percentage of the risk covered by the insurer.
What is commercial risk ?
This is the non-payment or market interruption which results from the default of a private buyer.
What is political risk ?
This risk results from a government’s decision or from a public entity’s failure to comply with contractual obligations or from a political event.
What is subrogation ?
This is the right for the insurer to take legal action against a third party (trading partner, guarantor or local authorities) responsible for a loss to an insured for which a claim has been paid.
What is underwriting ?
The underwriting is the decision by which the insurer agrees to cover the risk of a potential loss to certain conditions and in exchange for payment of a premium.
