The period agreed by the insurer and policy holder within which the policy holder's customer must pay the invoice in order for negative effects on the insurance cover to be avoided (suspension of cover). The maximum extension period starts on the invoice date. The maximum extension period is specified in the insurance policy and may differ from country to country. The credit limit notification may specify a different maximum extension period.
The policy holder has concluded a master agreement with the insurer. The policy holder must offer all buyers in the agreed countries with receivables above the discretionary limit to the insurer for cover. The policy holder is not entitled to select which buyers to offer for cover. For reasons of risk spread, the obligation to offer all business for cover applies to “good” and bad” buyers alike.
In credit insurance, there is an insured event called “payment default”. If the insured receivable has not been paid in full despite due debt collection by a debt collection agency or a solicitor six months after launching debt collection measures, “payment default” occurs. The precise rules are set out in the supplementary clause on “payment default”.
The policy holder is the customer of the insurer and enters into a contract with the insurer.