The Umbrella Policy, Issued by the Export-Import Bank of the U.S. is made available to selected organizations who act as policy "Administrators" for access by several exporters having limited experience in extending export credit terms. The Administrator has no responsibility for the underlying export transactions; however, it is responsible for performing the various administrative duties specified in the policy.
The qualifications for participating in this program are few and simple. First, a company must qualify as a viable exporter to the Exim policy underwriters. Secondly, including subsidiaries and affiliates, total export credit sales (total exports excluding sales made on terms of cash in advance or confirmed irrevocable letters of credit) must not have exceeded $3,000,000 as an average over the preceding two fiscal years. Thirdly, the company must be classified as a "small business" by SBA (Small Business Administration - U.S.Government) guidelines. Finally, the company or any affiliates can not have been an Exim policyholder during the preceding two years.
The policy covers the same losses as covered by other EXIMBANK policies. Normally coverage is 95% for "commercial credit risks" and 100% for "political risks." There is no minimum annual or deposit premium required by Exim. There is, however, a non-refundable policy application set-up fee of $500 paid to Export Insurance Services which accompanies the application. Administrative costs of $.20/$100, as indicated on the Premium Schedule, are included in the premiums paid during the year. There are no other premiums of administrative fees payable.
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