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Non-performance on the part of the Buyer of his contractual obligations. Default can trigger a claim for the credit insurer if cover for Protracted Default (non-payment after a defined period) is included in the cover given under the policy (see also: Unwillingness to pay and Inability to pay). |
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Companies in which you directly or indirectly hold a majority of the shares or are otherwise able to exert a controlling influence on management decisions. Such companies are not insurable.
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This is the assignment of all current and future receivables to a new creditor in a legal transaction.
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Your contractual partner in the contract for the supply of goods or of services, who is liable to pay the outstanding receivables under it.
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These are legal or contractual obligations which exist alongside the principal contractual performance due under the policy. They are ways in which the party concerned is required to act. If you wilfully and knowingly fail to comply with them, this may have adverse legal consequences for you up to and including the release of the Insurer from the liability to indemnify a loss. |
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A procedure which attempts to give companies in economic difficulties the chance to reorganize their finances and continue as a going concern. Its goal is to prevent the break-up sale of the company. The creditors are asked to help reach this aim by deferring their claims or waiving them entirely or partially. During the reorganization period, the debtor is protected from individual creditors who might wish to execute a judgement title. |
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The maximum amount up to which Prisma accepts insurance cover on your Buyer. |
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An official document informing you what Credit Limit Prisma is willing to accept for your Buyer. |
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As soon as the Discretionary Limit is exceeded for a Buyer, this request must be sent either in writing or electronically via Prisma Net, giving details of the amount required, the exact company style and address of the Buyer and your payment record with him. |
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The ongoing monitoring of the creditworthiness of all the Buyers for which you have Credit Limits. |
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An amount payable per Credit Limit and year for the ongoing monitoring of your insured Buyer’s creditworthiness. |
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An option to have insurance cover for Buyers which have not been checked by Prisma. |
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When your outstanding receivables from a Buyer reach or exceed this amount, you are obliged to apply for a Credit Limit. |
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Certain cases are excluded from insurance cover from the beginning of cover.
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An integral part of the policy (alongside the special clauses and the Schedule). |
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Is defined by insufficient assets being available to pay debts when they fall due. It is the event which triggers a petition for insolvency proceedings.
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Compensation for a loss paid by the insurer.
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This is marked by the inability of the debtor to pay his debts when they fall due, or by technical insolvency, an excess of liabilities over assets in the short term, and must be dealt within insolvency proceedings. |
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The policy period (normally 12 months), which plays an important role in a number of policy provisions (e.g. Maximum Liability, Minimum Annual Premium). |
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Costs incurred in the prevention or mitigation of a loss or for the collection of the debt owed by the Buyer. |
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Inclusion in insurance cover of receivables which accrued prior to the inception of cover under a policy. |
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This is deemed to have occurred when an invoice still remains unpaid after the expiry of the Maximum Extension Period. |
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This is the maximum amount in respect of all claims made in one and the same insurance year which Prisma is liable to pay. |
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The minimum amount of premium per insurance year which is payable in any event – irrespective of the level of outstandings or the turnover you declare to us. |
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The policyholder’s obligation to apply for Credit Limits for all his Buyers who are domiciled in a country according to the Schedule to his policy and with whom he has outstandings at or exceeding the amount of the Discretionary Limit. |
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The party who is legally liable to pay your receivables.
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A change in the terms of payment which fixes a new due date or several due dates for payment in instalments.
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The term agreed between you and your Buyer within which payment for the supply of goods or services by you, must be made. |
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The price paid for insurance cover. It is calculated according to the amounts declared by the policyholder, but at least the minimum annual premium is payable per insurance year. |
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The policy for medium-sized and large companies, offering cover for all their receivables in respect of the supply of goods and services to commercial buyers. In contrast to Prisma Invest, it is not possible to cover single transactions under this policy. |
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The policy for insuring plant and equipment and capital goods transactions. In contrast to Prisma Global and Prisma Plus, single transactions can be insured under this policy. |
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The policy for small businesses, offering cover for all their receivables in respect of the supply of goods and services to commercial buyers. In contrast to Prisma Invest, it is not possible to cover single transactions under this policy. |
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The policy (fidelity insurance) offering cover against financial losses due to employee dishonesty caused by a defined category of insured persons. |
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A Buyer who only buys for his own personal needs. Not in business for profit, and therefore not insurable. |
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A type of corporation, which is not insurable, with a legal form which makes it unable to go into bankruptcy.
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The right of recourse to a third party taken by a contractual party who is liable for compensation. An insurer who has indemnified a policyholder will normally attempt to recover the amount from the party responsible for causing the loss.
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A condition of the contract of sale with your Buyer which states that you as seller remain the owner of the goods until you have received payment for them in full. |
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This gives you the right to reclaim a specific, identifiable object from the insolvent estate in insolvency proceedings in respect of the assets of a Buyer and to satisfy your claim from its realization. You must assert this right in the insolvency proceedings. The basis is your simple retention of title! |
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These rights can play a crucial role in insolvency proceedings. They are based on a security interest which was taken prior to the occurrence of insolvency, and give the creditor the right to preferential satisfaction of his claims before all other creditors out of the proceeds realized from the object which may be separated from the insolvent estate. You must assert the right to separate assets actively in the insolvency proceedings, just like registering outstanding receivables to rank against the insolvent estate. The realization of the object of the security interest is done by the insolvency administrator. The following types of security interest give you the right to separate assets: a pledge, extended and expanded retention of title, assignment by way of security. |
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The “special conditions”, part of the policy (alongside the General Conditions of Insurance and the special clauses). |
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The portion of every loss under an insured event which is not indemnifiable by Prisma and which you must bear for your own account. |
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An integral part of your policy (alongside the Schedule and the General Conditions of Insurance). |
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After suspension of cover, all new receivables which accrue are excluded from cover and uninsured receivables which already exist can no longer come under cover as room becomes free.
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The period after the expiry of which a specific legal right can no longer be exercised.
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This is deemed to be the case when sufficient assets are available, but the debtor is not willing to meet his liabilities.
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