Dear friends,
Can a Open cover insurance open for all currency documentary credit? I just want to say-Can a single open cover insurance use for opening different LC in different currency?
Open Cover Insurance Used For Opening Different Currency LC
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Tareq
- Posts: 39
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- First Name: Isratul
- Last Name: Tareq
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picant
- Posts: 2026
- Joined: Wed Aug 20, 2008 1:49 pm
Insurance limit
Hi Pal,
I think that an insurance company may enter in risks in different currencies, specially when issue an open policy.
The insured amount in different currencies will be calculated, debited the prime in local currency and book the risk in foreign currency. If the currency has a very big volatility the insurance company may deal a currency option or a forward to reduce this risk.(IMHO THIS IS NOTIONAL ONLY)
Other comments appreciated
Ciao
I think that an insurance company may enter in risks in different currencies, specially when issue an open policy.
The insured amount in different currencies will be calculated, debited the prime in local currency and book the risk in foreign currency. If the currency has a very big volatility the insurance company may deal a currency option or a forward to reduce this risk.(IMHO THIS IS NOTIONAL ONLY)
Other comments appreciated
Ciao