Euler Hermes: Intro to claims Flashcards
1
Q
Demurrage
A
The charges that the charterer pays to the shipowner for its extra use of the vessel
2
Q
Causes for credit insurance
A
Protracted default, Contract repudiation, Demurrage, Political risk, Recoveries expenses
3
Q
Causes for protracted default
A
Insolvencies, shock loss
4
Q
Shock loss
A
When an insurance firm suffers a loss that causes financial distress because the clients loss is so severe. Protection can be provided using reinsurance mechanisms and diversification.
