Please see the sample Insurance Application-Instructions (IAI) below. The exporter may use the IAI to apply for a specific policy. Some exporters supply the original letter of credit (L/C) or its photocopy without supplying the IAI, and let the forwarder handle the insurance application.

(1)
" NAME OF THE ASSURED (Beneficiary - Payable to the order of) "

Unless otherwise stipulated in the letter of credit (L/C), the exporter's complete name and address is entered in the field (NAME OF THE ASSURED). The exporter endorses the insurance document in blank---without specifying to whom the document is endorsed---before presenting it to the bank.

(2)
" AMOUNT INSURED "


Amount of Insurance Coverage

(3)
" TERMS OF INSURANCE COVERAGE (Clauses) "

If the trade terms call for insurance, the letter of credit (L/C) normally will stipulate the type of insurance required and the additional risks which are to be covered, if any. The terms "usual risks", "customary risks" or similar imprecise terms should not be used in the L/C.

In the sample letter of credit the DEF Imports requires insurance covering Institute Cargo Clauses (A), plus the additional risks Institute War Clauses and Institute Strikes Clauses.

Unless otherwise stipulated in the L/C, the insurance document which indicates that the cover is subject to a franchise or an excess is acceptable.

(4)
" LATEST ISSUING DATE OF INSURANCE POLICY "

The insurance policy or insurance certificate, as the case may be, must bear a date of issuance not later than the date of loading on board or dispatch or taking in charge as indicated in the transport document, unless otherwise stipulated in the L/C.

(5)
CLAIM AGENT:
" Indicate complete name and address of claim agent at port of destination "
" Indicate claims payable in ________ (city, country) in ________ currency "

The sample letter of credit specifically requires "insurance policy ... evidencing that claims are payable in Import-Country", as such enter "Sunlight City, Import-Country" or "Import-Country" in the space (blank) provided.

The exporter must check the insurance policy upon receipt to ensure that the claims and the claim agent at destination are properly indicated.

Unless otherwise stipulated in the letter of credit (L/C), the insurance document must be expressed in the same currency as the L/C. Further to the sample letter of credit, enter "U.S. Dollar" in the space (blank) provided.