Example of Commercial Financing Insurance

A trade finance insurance, It is an insurance provided by insurers and some banks, in order to shield and pay the debt of a merchant in the event of his death or disaster.

The amount of the insurance is at the discretion of the experts of the insurers, who will measure the cost of the merchandise, the type, the risk and the circumstance of the insured, to issue the amount to be paid for said insurance.

In general, these insurances have a term of a minimum of one year to a maximum of three years.

In the event that the insured dies, (not by suicide) or there is a disaster, the insurer would cover the total cost of the insured merchandise.

Trade finance insurance example:

Mr. Jack Deveró Goland, is a winemaker who produces high quality wines, to be able to ship and import The product from him to the country, the Secretary of the Treasury demands that he have commercial financing insurance.

Being an overseas import, it is possible to carry out the corresponding insurance contract in the country of origin in which the merchandise will be insured at the value original, or in the country in which it will be imported, where the value may be higher, producing a greater refund in case of disaster but with a higher cost in the purchase of the insurance.

For such circumstance, he appears together with one of his lawyers at a branch of Seguros ultramarinos S.A de C.V that has his headquarters in N.Y.

In this insurer I send experts fifteen appraisers, to assess the absolute value of the merchandise and the vital circumstance of Mr. Deveró who is obliged to deliver a medical certificate that assures the circumstance of his Health.

Later, Mr. Deveró and his advisers appeared to formalize the commercial financing insurance contract. corresponding, presenting the corresponding documents requested by the Insurer and signed the contract with its guarantees corresponding. In said contract, a total amount of 195,600 pesos was assessed in national currency as the purchase amount of the insurance, and the contract was finalized with the corresponding stamps.

Subsequently, he presented these documents to the corresponding authority, who formalized the permit for the merchandise to enter the country.