EX-IM BANK UMBRELLA COVERAGE
WHO IS ELIGIBLE
Upon application for coverage, companies will be considered eligible if
Exporters may remain in the policy as long as:
Protects your foreign receivables from covered commercial and political risks.
A Marketing Tool
Enables extension of more attractive
credit terms to assist you in competing for foreign sales.
A Financing Aid
More favorable financing may be arranged by assigning policy proceeds to a lender as collateral. If the assignee bank complies with its responsibilities, it will be held harmless from many defenses to nonpayment of a claim which ordinarily would be asserted.
HOW IT WORKS
Me Administrator of the Umbrella
Policy agrees to act as a representative of the insured exporter, to pay premiums and to
submit designated forms to Ex-Im Bank.
Political Risks Covered
A foreign government's inability to
convert local currency into U.S. dollars ("transfer risk').
Commercial Credit Risks Covered
Nonpayment for reasons other than political risk, including default, insolvency and bankruptcy, but excluding product disputes between the exporter and the buyer.
100% of gross invoice value for Iowa due to political risks, 95% for commercial risks.
A fixed rate schedule applies, with
premium rates based on repayment terms and type of buyer.
A specific credit line is established by Ex-Im Bank for each buyer. Requests for credit approvals are processed usually within two weeks after a completed application is received.
Claims can be filed between 90 and
240 days after the date of default.
Ex-Im Bank covers non-military goods or services with at least 51 % U.S. content prior to mark-up, including labor.
OTHER IMPORTANT FEATURES
Exporters are expected to insure all
overseas sales made on credit terms during the policy period, however single-buyer
coverage can be considered (without a minimum premium and without the special hold
harmless--assignment) provided the coverage is used to support an Ex-Im Bank or public
entity Administrator working capital loan or guarantee.
WHO WE ARE
Ex-Im Bank is the Export-Import Bank of the United States, an independent agency backed by the full faith and credit of the U.S. Government. A list of current Umbrella Policy Administrators is available from Ex-Im Bank.
WHO TO CONTACT:
For more information, contact or ask your insurance agent or broker to contact:
EXPORT-IMPORT BANK OF THE U.S., INSURANCE DIVISION,
Or call one of the regional offices in the Midwest (312/353-8040), Northeast (212/466-2950), Southeast (305/526-7425), Southwest (713/589-8182) and West (310/322-1152)
This is not a solicitation by the Export-Import Bank of the United States or its employees. It is a descriptive summary only. The complete terms and conditions of the policy are set forth in the policy, application and endorsements.
UMBRELLA INSURANCE POLICY
The complete terms and conditions of the insurance policy are detailed in the Umbrella Insurance Policy itself (copy attached). The insurer under the policy is the Export-Import Bank of the United States (Eximbank), an agency of the U.S. Government. The policy is issued to Export Insurance Services, Inc. the Administrator. The administrator, as well as the insured, has certain responsibilities Under the policy. These are outlined below.
WHAT IS COVERED
The policy covers losses arising from a foreign buyer's failure to pay for products shipped b you pursuant to an agreement with the buyer. If the buyer becomes insolvent or does not pay his debt within 90 days from the agreed upon date of payment, the loss is commercial and the coverage is 95% of the invoice value. There is no deductible.
If the buyer does not pay because of specified political occurrences, such as war, hostilities, civil war, rebellion, confiscation, expropriation, revolution, cancellation of import licenses or currency inconvertibility, the loss is political and the coverage is 100%. There is no deductible
You will be covered for the amount of your loss subject to the amount of the Special Buyer Credit Limit approved by Eximbank for the particular buyer and subject to the insured percentage of coverage indicated above.
The amount of your loss is subject to the gross invoice amount which is the sales price plus insurance, freight and other charges paid in U.S. dollars in the United States.
REQUIREMENTS OF AN INSURED TRANSACTION
The policy shall not apply to any shipment unless each of the following conditions is met:
1. The product sold must be:
a. Shipped from the United States to a buyer approved by the
Insurers in a Special Buyer Credit Limit during the policy period or such shorter period
as may be specified in the Special Buyer Credit Limit;
2. The terms of sale must:
a. Be specified in a contract of sale or written obligation;
WHAT IS NOT COVERED
1. Any shipment which does not meet the requirements of an insured
transaction (see above);
LIMIT OF LIABILITY
Eximbank shall only be liable for the insured percentage of the amount of the Special Buyer Credit Limit approved for each buyer. Eximbank's total liability to you shall not exceed the aggregate limit stated in the endorsement which adds your name to the policy.
RESPONSIBILITIES OF THE ADMINISTRATOR
1. The Administrator is the Exporter's agent for handling all matters pertaining to the Umbrella Policy. The Administrator has no insurable interest in transactions undertaken by the Exporter but acts as his representative for purposes of all communications with, and reporting to EXIM. The Administrator agrees:
a. To submit to EXIM on your behalf an application together with
required supporting information for a Special Buyer Credit Limit on buyer to whom
shipments are to be made;
RESPONSIBILITIES OF THE EXPORTER
The Exporter Agrees:
1. To ask the Administrator to apply for a Special Buyer Credit Limit for
each buyer prior to shipment;
1. Claims must be filed in accordance with the following time limitations
determined by type of loss:
You can assign your right to a claim payment to any financial institution by filing an Assignment Agreement. Your Administrator will assist you with this agreement.
EXPORT INSURANCE SERVICES, INC.
RATES PER $100 OF GROSS INVOICE AMOUNT
CLASS I: SOVEREIGN OBLIGORS OR GUARANTORS: SOVEREIGN LETTERS OF CREDIT (REFER TO APPLICABLE TERM); POLITICAL ONLY TRANSACTIONS: PRE-SHIPMENT COVERAGE: CONSIGNMENT COVERAGE
CLASS II: FINANCIAL INSTITUTION ACTING AS OBLIGOR OR GUARANTOR: NON-SOVEREIGN PUBLIC-SECTOR OBLIGORS OR GUARANTORS: NON-SOVEREIGN PUBLIC-SECTOR LETTERS OF CREDIT (REFER TO APPLICABLE TERM): PRIVATE-SECTOR LETTERS OF CREDIT (REFER TO APPLICABLE TERM)
CLASS III: PRIVATE-SECTOR OBLIGORS OR GUARANTORS
*The EXIM premium rate has been increased $.20/$100 to cover Administrative Costs.
P.O. Box 211837 - Augusta, Georgia 30917-1837
© 2016 Export Insurance Services, Inc. All Rights Reserved.