1. Trade credit insurance
is a form of credit life insurance arranged by financial institutions.
provides protection against a firm's normal credit losses losses
may only be written to cover individual accounts or on a portfolio of accounts.
none of the above.
2. "Excess-of-loss" trade credit insurance policies:
tend to have a large annual aggregate deductible.
require the insurer to assign a credit rating to each account that is covered by the policy.
are designed to provide protection for a normal level of credit losses.
are only used in domestic trade credit insurance.