Policy in detail

Receivables resulting from goods or services supplied are not insured if the supply violates any relevant law or regulations (including any economic or trade sanction law or regulations).

For the avoidance of any doubt the insurer is not deemed to provide cover under the policy nor shall it be liable to make any claim payment to the extent that the provision of such cover or payment of such claim would ex-pose it to any sanctions, prohibition or restriction under relevant trade or economic sanction laws or regulations.

With the commencement of the Policy, cover includes already existing accounts receivable provided the payment terms agreed between the Insured and the Buyer do not exceed the maximum terms of payment as defined in the Specific Conditions of Insurance (A) and the accounts receivable are not overdue at commencement of the insur-ance Policy.

The premium stipulated in the Specific Conditions of Insurance (A, 11) for such additional cover becomes due and payable at commencement of the insurance Policy and is not part of the minimum annual premium (A, 1.2).

Contrary to § 1 and § 2.7 GCI Euler Hermes additionally indemnifies losses due to bad debts in respect of insured accounts receivable which become uncollectable due to the occurrence of an insured event after the expiry of the Policy. An inclusion of uninsured accounts receivable according to § 3.2 GCI subsequent to the expiry of the Policy is excluded.

In this case the Insured has to comply with the obligations according to § 8, § 9, § 10, § 12.4 and § 12.5 GCI after the expiry of the Policy.

In addition to § 15 GCI any indemnification paid pursuant to this clause for an insured event occurred after the expiry of the Policy will be allocated to the final insurance year.

1. Notwithstanding § 2 Figure 3 GTC decisions to reduce Credit Limits or cancel Cover become effective ** calendar days after the receipt of the respective cancellation notice and apply from this point in time to all sub-sequently despatched goods and/or work or services by you to the Buyers concerned. The prolongation of cover applies only if:
   1. 1.1 the Buyer has been in receipt of despatched goods and/or work or services at least twice during the 12 months preceding the receipt of the cancellation notice and has duly met his payment obligations by the agreed payment deadline plus the notification period for overdues; and
   2. 1.2 no Insured Event pursuant to § 11 GTC or automatic cancellation of cover pursuant to § 5 GTC occurred on or before the receipt of the cancellation notice with respect to the Buyer concerned.
2. If during the period defined in paragraph 1 of this section an event pursuant to 1.2 of this section occurs, cover is withdrawn automatically pursuant to § 2 Figure 7 GTC for all goods and/or works or services you despatch after the occurrence of the event.
3. This section does not apply if cover for the respective Buyer can be prolonged notwithstanding the GTC under the clause Insurance Cover for delivery commitments / Binding Orders agreed upon in the Special Terms.
4. This section does not apply for Buyers domiciled in a country stipulated in the Specific Conditions of Insurance (A, 12) for which the column ‘Prolongation of Validity of Credit Limits’ is marked ‘No’.

1. Insurance cover under the Policy is provided ***also/only*** in respect of goods delivered or works or services performed for insured Buyers by the company specified in the Specific Conditions of Insurance (A, 11) (Co-Insured).
   
   
2. Notifications and declarations under this Policy can be made by the Insured or the Co-Insured. The same applies to the fulfillment of obligations. Notifications by Euler Hermes must be addressed to the Insured, unless other-wise agreed.
   
   The Co-Insured shall bear the consequences of any non-compliance with legal or contractual obligations as if he were the Insured, irrespective of whether such non-compliance was due to the Insured or the Co-Insured. The Insured shall bear the consequences of any non-compliance with legal or contractual obligations due by the Co-Insured. The provisions of the General Conditions of Credit Insurance shall also apply to the Co-Insured.
   
   *** Note ***
   The Credit Limit set for a Buyer shall apply to the accounts receivable of the Insured as well as to those of the Co-Insured.
   or
   Various Credit Limits set for a Buyer shall apply independently to the accounts receivable of the Insured and to those of the Co-Insured.

1. With regard to Buyers included in the scope of the Policy cover shall be provided also to accounts receivable that have been assigned by the Insured to the company specified in the Specific Conditions of Insurance (A, 11) (Co-Insured) and that origin from the delivery of goods and the performance of works or services conducted by the Insured.
2. All notifications and declarations to Euler Hermes can be made or given by either the Insured or the Co-Insured, and all duties and obligations in respect of the insurance Policy are binding on the Co-Insured as on the Insured. All notifications and declarations by Euler Hermes in respect of the Policy must be addressed to the Insured only, unless otherwise agreed.
   
   Any failure by the Insured to comply with material duties or obligations, either legal or contractual, is also effec-tive against the Co-Insured. Conversely, any failure by the Co-Insured to comply with material duties or obliga-tions is effective against the Insured. All other provisions of the General Conditions of Credit Insurance are also binding on the Co-Insured.
   
   *** Note ***
   The Credit Limit set for a Buyer shall apply to the accounts receivable of the Insured as well as to those of the Co-Insured.
   
   

1. Costs incurred for work in progress during the Policy period are covered starting from the commencement of the manufacture of goods up to their completion or, in the case of works or services, from the commencement of the services, provided that these are evidenced by a written order and Euler Hermes has set a Credit Limit for the Buyer concerned.
2. Costs for work in progress are those direct costs and overheads which can be proved to have been incurred in connection with the specific goods to be manufactured or the works or services to be performed according to the principles of generally accepted costing procedures - not including any loss of profits which may be calculated - and were indispensable for the completion of the order or performance of the services as specified in the con-tract. Legally valid liabilities of the Insured towards third parties for the delivery of goods or the performance of works or services which were necessary for the fulfilment of the Insured's contract are included in these.
3. Costs for work in progress are insured in the order of incurrence (but shall not exceed in total the value of the order as specified in the contract).
   1. 3.1 as long as the total of insured accounts receivable due for the delivery of goods and the performance of works or services does not reach the written Credit Limit set by Euler Hermes, and
   2. 3.2 in so far as the period which has elapsed since the commencement of manufacture or of the services does not exceed that stipulated in the Specific Conditions of Insurance (A, 12) at the date when cover is cancelled according to § 2.3 GCI or an insured event as defined under § 11 GCI has occurred, and
   3. 3.3 in so far as the costs are evidenced by documentary proof and can be satisfactorily proved to have been incurred in connection with the insured order.
4. Immediately after receipt of a Credit Limit Notification according to § 2.3 GCI or the occurrence of an insured event pursuant to § 11 GCI the Insured shall supply detailed information regarding the stage of manufacture or service of each order on that date and the costs for work in progress accrued up to that date in accordance with No. 2 above. Additionally the Insured shall state the accounts receivable which have arisen until then as a result of the supply of goods and work or services.
5. If cover on a Buyer ends for one of the reasons specified in § 2.7 GCI, cover for any costs incurred for work in progress subsequent to this date also ends. Notwithstanding the foregoing pursuant to § 8 GCI Euler Hermes is entitled to instruct the Insured to complete as the case may be goods, works or services in progress. In this case the costs for completion in excess of the Credit Limit are insured under the insurance Policy.
6. If Euler Hermes cancels cover on a Buyer according to § 2.3 GCI the insured event in respect of the costs for work in progress is deemed to have occurred 12 months after notification of the cancellation, unless Euler Hermes has issued a request for completion in accordance with No. 5 before or an insured event as defined under § 11 GCI has meanwhile occurred.
7. Euler Hermes’ liability will cease three months after the expiry of the Policy in respect of any costs for work in progress not by then invoiced as delivered goods or works or services performed.
8. Costs for work in progress are subject to the obligation to declare all business for cover.
9. In calculating the amount of the loss, payments and recoveries as detailed under § 12.2 GCI will be deducted from the costs for work in progress.
   
   *** Note (bei Saldenprämie) ***
   The costs for work in progress insured under this clause must be stated in the monthly declaration for premium calculation.
   
   
   
   *** Note (alternativ): ***
   The costs for work in progress insured under this clause shall be notified with the amount of CHF.
   
   

1. In case Euler Hermes has not set a Credit Limit for a Buyer supplementary to § 2 GCI accounts receivable up to the amount of the discretionary limit (A, 7) per Buyer are insured under this insurance Policy, if the Insured has set a Credit Limit for the Buyer, subject to the following conditions being fulfilled:
   1. The Insured has no knowledge of any facts or circumstances which do not justify the granting of a Credit Limit for the Buyer in particular none of the events listed under § 9 2.2 - 2.4 GCI has occurred during the twelve months preceding the delivery of the goods or performance of the works or services, or accounts receivable are unpaid according to § 9 2.1 GCI or the Buyer is insolvent. The Buyer is only deemed to be insolvent if one of the Insured Events according to § 11.2. - 5. GCI has occurred.
   2. The Insured within the last 12 months preceding the granting of the Credit Limit has not been informed by Euler Hermes that a Credit Limit application for the Buyer has been declined.
   3. 1.3 The Credit Limit granted for the Buyer must be definitely justified by a written commercial information agency report or a print-out of a commercial information agency report obtained via online-link which is not older than 12 months. The agencies are stipulated in the Specific Conditions of Insurance (A, 11). Such report must state without any qualification or recommendation of a security a definite amount as maximum Credit Limit.
   4. 1.3.1 Such an agency report will not be required if the Buyer within the preceding 12 months has at least twice taken delivery of goods or has had works or services performed and has duly paid for these no later than 30 days after the original due date.
   5. ***1.3.2 In the case of Credit Limits exceeding *** CHF 0‘000,- the Buyer must have at least twice taken delivery of goods or has had works or services performed, each time to a minimum amount of *** CHF 0‘000,- and duly paid for these no later than 30 days after the original due date.
   6. 1.4 The Insured will keep the documents on which the assessment of the Buyer was based for a period of 12 months for inspection by Euler Hermes.
2. 2.1 If a receivable remains unpaid up to the expiry of the notification deadline defined under A9, the Insured must immediately proceed according to one of the two steps listed in § 10.1 GCI either in writing or by online link.
3. 2.2 Receivables insured within the framework of the credit assessment conducted by the Insured are deemed to be uncollectable in addition to the insured events set out in § 11.2.-5. GCI if the insured receivables remain un-paid in whole or in part after expiry of the period stipulated in the Specific Conditions of Insurance (A 12), which shall be counted from the date on which Euler Hermes receives the collection mandate (protracted default).
4. Insurance cover pursuant to this clause is not granted for Buyers domiciled in a country stipulated in the Specific Conditions of Insurance (A, 12) for which the column ‘Credit Assessment by the Insured’ is marked ‘N’.
5. The turnover/accounts receivable for the Buyers assessed by the Insured must be stated in the notification for the premium calculation.
6. After the automatic cancellation of cover for Buyers assessed by the Insured cover according to this clause for accounts receivable arising from the subsequent delivery of goods or performance of works or services will be reinstated after cancellation if and when the Buyer has paid all outstanding accounts receivable due up to the date of payment and no adverse information according to § 9 2.1 - 2.4 GCI has become known in respect of these deliveries or services.
7. To the extent that the total of accounts receivable due from one and the same Buyer exceeds the discretionary limit (A, 7), the whole debt is only covered if a written Credit Limit has been obtained from Euler Hermes.
8. A Credit Limit set by the Insured is automatically replaced by a Credit Limit obtained from Euler Hermes for sub-sequently generated accounts receivable from the same Buyer.

In amendment to § 5 GCI, accounts receivable due from subsequent deliveries of goods or performance of works or services effected at a time when an earlier insured or uninsured accounts receivable due from a Buyer for whom Euler Hermes has set a Credit Limit remains unpaid in whole or in part at the latest by the specified date (A, 10) are insured if the accounts receivable outstanding does not exceed the amount specified in the Specific Conditions of Insurance (A, 11).

The obligation of the Insured to notify Euler Hermes of overdues according to § 9.3 GCI at the specified date (A, 9) does not apply to such receivables, hence neither does the obligation to issue the collection mandate in accord-ance with § 10.1 GCI.

1. If the Insured committed himself to deliver goods to the Buyer before receiving the notification of the Insurer reducing or cancelling the Credit Limit without having the possibility to withdraw from this contract with the Buyer due to legal regulations insurance cover is maintained.
   
   This applies only to accounts receivable arising out of deliveries effected during the policy period and effected within the period stated in the Specific Conditions of Insurance (A, 12) after receiving the Insurer’s notification of cancellation or reduction of the Credit Limit.
2. Insurance cover is cancelled automatically in respect of accounts receivable arising out of delivery commitments not yet effected prior to the automatic cancellation of cover according to § 5 GCI or the occurrence of an insured event according to § 11 GCI.

1. In amendment to the provisions of § 2.4.1 and § 2.4.6 GCI, the Insurer indemnifies losses of accounts receivable due from buyers originated in export business which are uncollectable due to political reasons in the countries specified in the Schedule (A,12), including losses of accounts receivable due from foreign public buyers.
   
   In any case cover under this clause is provided exclusively for buyers for whom the Insurer has set a credit limit in accordance with the provisions of § 2.1 GCI.
2. In addition to § 11 GCI accounts receivable are deemed to be uncollectable due to political reasons when
   1. 2.1. after the due performance of the contract by the Insured the payment or collection of such accounts receivable in any form whatsoever is prevented as a result of war, including civil war, hostilities, rebellion, insurrection, revolution, riot or civil commotion, or
   2. 2.2. the conversion or transfer of payment due in respect of the contract is prevented by the action of public authorities or state institutions which impedes the international movement of payments such that, after the foreign buyer has deposited the equivalent value with a solvent bank in his country for the purpose of transfer to the Insured in discharge of his contractual payment obligations, and despite the due performance of all actions and formalities necessary for the conversion and transfer of the sum, this amount has not been converted into the agreed currency or transferred; notwithstanding the foregoing foreign public buyers are released from the obligation to deposit monies under this sub-paragraph;
   
   
   and the period (Protracted Default) stipulated in the Schedule (A,12), which shall be counted from the date on which Euler Hermes receives the collection mandate, has lapsed without payment being received.
3. If the risk deteriorates or for any other material cause, the Insurer reserves the right to immediately cancel cover for any or all countries.
   
   This decision becomes effective for subsequent deliveries or services on receipt of notification from the Insurer.
4. Losses of accounts receivable due directly or indirectly (whether before or after the outbreak of hostilities) to war between any of the following countries: China, France, the United Kingdom, the Russian Federation or the United States of America, are excluded from cover.

If a Credit Limit has been set for a supplier of the Insured, the insurance cover shall include the claim for repay-ment of any amounts which the Insured has paid in advance to his supplier on the basis of contractual agreements.

Insurance cover is not provided if the period agreed between the Insured and the supplier for the delivery of goods or the performance of works or services exceeds the period stipulated under the terms of payment in the Specific Conditions of Insurance. This period shall count as from the date the advance payment is made.

Any delivery of goods or performance of works or services which has been made according to the contractual obligations will be set-off against the advance payment.

Advance payments shall be stated in the declaration for the premium calculation.

Euler Hermes indemnifies losses due to bad debts in respect of goods delivered and works or services performed during the Policy period which become uncollectable due to an insured event occurring during the Policy period.

1. Cover is provided for undisputed accounts receivable due for goods delivered and works or services performed by the Insured. Cover commenc-es on the date the goods are despatched or the works or services are performed in as far as the delivery of goods or performance of works or services concerned is invoiced within the following 30 days. If the relevant invoice is issued later, insurance cover commences only from this date.
2. Only accounts receivable for which a Credit Limit Notification stating a Credit Limit for the respective Buyer was issued by Euler Hermes prior to delivery of the goods or performance of the works or services are insured. For the purpose of this Policy the term Credit Limit Notification shall include all notifications stating any decision by Euler Hermes with reference to the scope of cover provided under the Policy for the respective insured Buyer or for the totality of insured Buyers domiciled in the respective country. Euler Hermes can issue such Credit Limit Notification in writing, by facsimile or via online-service.
3. If the risk deteriorates or for any other material cause, Euler Hermes reserves the right to immediately reduce or cancel cover on the Buyer concerned or on the totality of Buyers domiciled in the respective country. Euler Hermes is entitled to reduce cover in particular but not limited to, by reducing a Credit Limit or reducing the insured percentage.
   
   This decision becomes effective for subsequent deliveries or services on receipt of the Credit Limit Notification from Euler Hermes. If cover is reduced, subsequent deliveries or services are insured up to the amount of the reduced Credit Limit in so far as the new Credit Limit allows such inclusion after payment of older accounts receivable.
4. Cover is not provided for accounts receivable
   1. 4.1 due from public Buyers and private individuals, provided that the latter were not transacting business as a company,
   2. 4.2 due from any company in which the Insured directly or indirectly holds a majority interest or can exert a controlling influence on management decisions, or vice versa,
   3. 4.3 in respect of contractual or legal default interest, contractual penalties, liability for damages and exchange rate losses or costs arising from the disputed acceptance by the Buyer,
   4. 4.4 resulting from letting or leasing of real estate,
   5. 4.5 resulting from deliveries of goods and performance of works or services where there has been a failure to obtain any documents or authorizations required, as well as accounts receivable arising from the delivery of goods whose importation into the country of destination or exportation from the country of origin contravenes any regulations in force,
   6. 4.6 where the loss is in whole or in part attributable to war, hostilities, civil commotion, riots, revolution, terrorism, strike, confiscation, obstruction of the traffic of goods and the transfer of payments by public authorities or state institutions, natural disasters or the direct or indirect effects of nuclear energy.
5. Customs duties, value added tax (VAT) and other taxes are not insured.
6. Accounts receivable arising from business in which the Insured agreed longer credit terms with his Buyer when concluding the contract than those stipulated in the Specific Conditions of Insurance are not insured unless the Credit Limit Notification contains a differing provision.
7. Cover on an insured Buyer lapses for accounts receivable due from subsequent deliveries of goods or performance of works or services if and when cover is cancelled by Credit Limit Notification or automatically according to § 2.3 GCI or § 5 GCI, or an insured event as defined by § 11 GCI occurs. When the Policy expires cover ceases for accounts receivable due owed by insured Buyers.

1. Accounts receivable are insured in chronological order up to the amount of the Credit Limit fixed for each Buyer.
2. Uninsured accounts receivable in excess of the Credit Limit are insured only if and when older accounts receivable have been paid. Cheques and bills of exchange are only deemed to be paid when honoured.
   
   Subsequent inclusion of uninsured accounts receivable is not permissible when cover is cancelled by Credit Limit Notification or automatically according to § 2.3 GCI or § 5 GCI or when the Policy expires.
3. Any payments received beforehand will be allocated to the oldest amounts outstanding.

The Insured must apply for Credit Limits in respect of all his business with each Buyer in the insured countries (A, 12) if the total amount due from a Buyer exceeds the Discretionary Limit stated in the Specific Conditions of Insurance (A, 7).

Accounts receivable due from subsequent deliveries of goods or performance of works or services effected at a time when an earlier insured or uninsured account due from a Buyer remains unpaid at the latest by the date specified in the Specific Conditions of Insurance (A, 10) are not insured, irrespective of whether non-payment of the accounts receivable has been notified by the Insured, unless Euler Hermes has confirmed the continuation of cover by Credit Limit Notification.

Euler Hermes will indemnify the percentage stipulated in the Specific Conditions of Insurance (A, 5) of each insured loss ascertained according to § 12 GCI, unless a different percentage has been specified in the Credit Limit Notification.

The percentage to be borne by the Insured may not be insured with a third party.

1. The Insured is obliged to provide Euler Hermes with the information stipulated in the Specific Conditions of Insurance (A, 4.1) together with all details necessary for the calculation of the premium. If the Insured fails to comply with or is negligent in respect of this obligation, Euler Hermes is released from its liabilities under the insurance Policy under the conditions set out in articles 6 and 8 of the Bundesgesetz über den Versicher-ungsvertrag (VVG).
2. The Insured agrees to pay to Euler Hermes the minimum annual premium stipulated in the Specific Conditions of Insurance (A, 1.2).
3. Premium, together with statutory stamp tax (currently 5 % of premium for insured Buyers in Switzerland and Liechtenstein) and any other levies which may be due under the laws of the country concerned, is payable within 10 days from the date of the invoice.
4. If a premium payment has not been made by the respective due date, the Insured will be requested to pay the outstanding premium within 14 days after the day on which the reminder is despatched, following the legally stipulated procedures. If there is no response to this reminder, Euler Hermes' liability to pay a claim is suspended from the expiry of the period of notice stipulated in the reminder onwards, and Euler Hermes is entitled to either take legal steps to demand payment of the outstanding premium or to withdraw from the Policy.
   
   Upon despatch of the second reminder by registered mail, an overdue fee of CHF 200.-/EUR 180.-/USD 200.- will be invoiced (determined on the basis of the Policy currency pursuant to Section 17 AVB). The invoiced overdue fee will be due regardless of whether the premium payment is made following the second reminder or Euler Hermes' liability to pay a claim is suspended. Euler Hermes is entitled to take legal steps to demand payment of the outstanding overdue fee in the event that payment is not made.
5. Notwithstanding the provisions above, Euler Hermes is not liable to indemnify a claim until the first premium payment has been received if the insurance Policy has not been delivered to the Insured.
   
   Any other questions relating to premiums shall be regulated as provided in the Bundesgesetz über den Versicherungsvertrag (articles 18 - 24 VVG).
   
   Euler Hermes has authorised Euler Hermes Services to issue and collect payment on invoices for premiums on its behalf.

The Insured undertakes to exercise due corporate diligence and take all appropriate measures to avoid or limit default.

Euler Hermes and Euler Hermes Services reserve the right, but are not obliged, to enter into agreements on behalf of the Insured with any of his Buyers to safeguard against default and protect the Insured receivables.

The Insured undertakes to follow the instructions of Euler Hermes and to obtain the consent of Euler Hermes before completing settlement or payment discussions or before taking any steps to limit default. Failure to do so will result in the Insured losing all entitlement to compensation in the event of a claim.

1. The Insured must immediately notify Euler Hermes by means of a collection mandate, in writing, or by online link, of the inability of any of his insured Buyers to pay.
2. In the Credit Limit application, the Insured must inform Euler Hermes whether, during the 12 months preceding the application for cover
   1. 2.1 due accounts receivable remained unpaid, or were not paid by the date stipulated in Specific Conditions of Insurance (A, 10), or
   2. 2.2 bills of exchange were prolonged beyond the original due date, or
   3. 2.3 cheques, bills of exchange or direct debits were not honoured for lack of funds, or
   4. 2.4 the Insured received any adverse information concerning the Buyer's financial situation or his ability to pay.
3. Following submission of the Credit Limit application, the Insured must immediately notify Euler Hermes in writing, or by online link, of any of the events listed under 2.2 - 2.4 above.
4. The Insured
   1. 4.1 must notify Euler Hermes immediately in writing or by online link of any changes in the trading procedures set out in the Specific Conditions of Insurance (e.g. the type of business done or terms of payment),
   2. 4.2 must obtain the written consent of Euler Hermes before granting a prolongation of the terms of payment after invoicing,
   3. 4.3 will promptly provide all information and any documents which Euler Hermes or a third party appointed by Euler Hermes deems necessary for the verification of the loss and the ascertainment of the amount of the loss or for debt collection purposes,
   4. 4.4 agrees to give Euler Hermes the right to examine any documents material to the Policy and to make or require to be made copies thereof,
   5. 4.5 will promptly advise Euler Hermes of any payments made by the Buyer or by third parties and any recoveries or rights of set-off which reduce the amount of accounts receivable due in any way whatsoever,
   6. 4.6 remains obliged to comply with the provisions under 4.2 - 4.5 after indemnification by Euler Hermes.
5. The Insured will treat all information received from Euler Hermes concerning the creditworthiness of any of his Buyers or of third parties in the strictest confidence. Since this information is given without any liability, the Insured waives any legal claims against Euler Hermes which may arise from the receipt of this confidential information, subject to the legal permissibility of Euler Hermes' disclaimer.
   
   The Insured further undertakes to protect Euler Hermes from any claims of third parties which may arise through confidential information becom-ing known to such third parties.

1. If an account receivable remains unpaid up to the expiry of the notification deadline defined under A9, the Insured must immediately proceed according to one of the two following steps either in writing, or by online link:
   1. 1.1 Transfer responsibility for collecting all accounts receivable from the Buyer in question to Euler Hermes Services by granting Euler Hermes Ser-vices the collection mandate, including appendices; or
   2. 1.2 request from Euler Hermes an extension of the deadline for reporting these unpaid receivables (A, 9). Euler Hermes can approve or reject this request in full or in part. Euler Hermes shall take note of this request without determining whether the receivables comply with the provisions of the insurance policy.
      
      If Euler Hermes approves the request and should the account receivable remain unpaid on expiry of the approved extended deadline, the Insured must immediately repeat one of the above two steps;
      
      If Euler Hermes rejects the request, the Insured must transfer to Euler Hermes responsibility for collecting all debts in accordance with 1.1 within 7 days of receipt of the rejection.
      
      If the sum of all unpaid accounts receivable from any Buyer is below the deductible defined in the insurance contract (A, 8), the Insured cannot transfer responsibility for collection to Euler Hermes.
2. When transferring the debt collection mandate to Euler Hermes Services, the Insured shall provide a trading history, starting 12 months before expiry of the due date of the oldest account receivable, a statement of accounts, orders, order confirmations, delivery slips, copies of invoices, reminders, correspondence, and all papers and documents required to exercise his rights.
3. The Insured must not accept or reject any proposal for an out-of-court or judicial debt moratorium agreement or any petition to similar effect without the express consent of Euler Hermes. Failure to observe this condition will result in the Insured losing any entitlement to compensation in the event of a claim.
4. Neither the acceptance of the debt collection mandate by Euler Hermes Services, nor the measures implemented by Euler Hermes Services in performance of the mandate, nor any instructions issued to the policyholder constitute a liability to indemnify under the terms of § 12 GCI.
5. The costs and fees incurred by Euler Hermes in connection with the recovery and enforcement of receivables from Insured Buyers shall be fully included in the collection fee (A, 2). The same applies to any costs incurred by the Insured on the instructions of Euler Hermes or Euler Hermes Services.
   
   Costs related to the correction of deficiencies and other complaints shall be borne by Euler Hermes Services only in so far as full legal validity is proven. Other than this, such costs shall be fully borne by the Insured.
6. In the event of accounts receivable for which there is no liability to indemnify due to a violation of the obligations set down in § 13 GCI, or receiva-bles from uninsured Buyers, the costs according to Part D.2 shall be fully borne by the Insured.

An insured event is deemed to have occurred on the date when the insured accounts receivable become uncollectable.
Accounts receivable are only deemed to be uncollectable when:

1. the insured accounts receivable remain unpaid in whole or in part after expiry of the period stipulated in the Specific Conditions of Insurance (A, 12) - starting on the day on which Euler Hermes receives the debt collection mandate - (protracted default), or
2. the debtor has been granted respite from his creditors by a court order or liquidation proceedings have been opened, or an agreement regulating the insolvent estate has been confirmed by the court, or
3. all the Buyer's creditors generally have agreed to a composition or other out-of-court settlement, or
4. it is confirmed in writing by the competent authority that the execution of a judgement has failed to satisfy the debt in whole or in part, or
5. any event has occurred which by any other system of law is substantially equivalent to any of the above. This is the case if, for instance, a court order has been made granting the debtor protection from his creditors.

1. Euler Hermes will pay a claim within 30 days if and when an insured event has occurred and the required documentation has been submitted. The insured event which occurred first is the basis for the settlement of the loss.
   
   Indemnification will be made when the final insured loss has been established.
2. In ascertaining the loss, the insured amount will be reduced by any rights of set-off, counterclaims, payments recovered or the proceeds from relevant sales of goods.
   
   If any part of the loss is uninsured, any rights of set-off, counterclaims, payments recovered or the proceeds from relevant sales of goods in re-spect of this part will be set off against it in the proportion of insured to uninsured accounts receivable, irrespective of any other agreement between the Insured and his Buyer.
   
   If the amount of the loss has not been definitely established within 30 days after the receipt of the requiered documentation, Euler Hermes will make a provisional loss settlement. In this connection Euler Hermes will estimate the amounts which are deductible in so far as these amounts have not yet been established.
3. Euler Hermes will deduct from any payment for a loss the deductible stipulated in the Specific Conditions of Insurance (A, 8). The payment for a loss represents the amount of the loss determined according to § 12.2 GCI after taking into account the insured percentage (A, 5).
   
   If further deductibles have been agreed under the Policy, Euler Hermes will indemnify the amount of the loss remaining after deduction of these items.
4. Any payments or proceeds received which were not included in the loss calculation must be notified immediately to Euler Hermes. All payments following indemnification shall be distributed between Euler Hermes and the Insured as proportions of the total account receivable representing the indemnification paid and the residual amount to be borne by the Insured. The proportion to which Euler Hermes is entitled shall be transfer-red immediately to Euler Hermes.
5. The Insured undertakes to forward the respective reimbursements immediately to Euler Hermes if the claim underlying an indemnification paid is not acknowledged either in full or in part by a subsequent legal ruling, or if it should transpire that there is no claim to indemnification.

Euler Hermes is entitled to refuse indemnification for accounts receivable in accordance with § 12 GCI if the Insured has not complied with one of the following obligations incumbent on him under § 5 GCI (Automatic cancellation of cover), § 6 GCI (Insured percentage), § 9 Paras 2 and 3 (Obli-gations of the Insured), § 10.1 (Debt collection).

Euler Hermes will be subrogated to any legal rights and remedies the Insured has against his Buyer or third parties up to the amount indemnified. The Insured agrees to undertake all necessary actions for the transfer of such rights at the request of Euler Hermes.

The Insured's obligations under § 9.4 GCI remain in force after the transfer of all rights and remedies in respect of the accounts receivable, claims and any other such legal rights.

The claims payable in respect of the losses (and/or legal costs) incurred in any one insurance year are limited to the amount specified in the Spe-cific Conditions of Insurance (A, 6).

Assignment of the right to payment of a claim under this Policy is admissible with prior written consent from Euler Hermes.

Any legal remedies available to Euler Hermes, as well as the right of set-off, shall also be valid against the assignees. The amount of the indemnifica-tion will however only be ascertained in consultation with the Insured.

The Policy currency is that specified in the Specific Conditions of Insurance (A).

Invoices denominated in currencies other than the Policy currency will be converted at the mean Typical Banknote Rate of exchange in Zurich on the date on which the collection mandate was received. This exchange rate shall remain valid until the definitive final statement of account and shall also apply to direct payments to the Insured and to payment of claims. Payments made directly to Euler Hermes shall be converted at the mean bank note rate in Zurich on the day on which they were credited.

1. The Policy will be renewed from year to year unless notice of cancellation from either of the parties is given in writing by recorded delivery 2 months before the renewal date.
2. Alterations or modifications of the Policy are only valid if confirmed in writing by Euler Hermes. Confirmation by computer-written letter without signature is deemed to be equivalent to a written confirmation.
3. The policy shall expire on the date on which bankruptcy proceedings are opened against the Insured or a legal debt moratorium with assignment of assets or liquidation settlement is conferred on the Insured, or a corresponding out-of-court debt moratorium or liquidation settlement is made. The same applies if an event of similar importance occurs outside Switzerland.
4. This Policy is to be governed and construed in all respects by the Bundesgesetz über den Versicherungsvertrag of 2nd April 1908 (VVG) in addition to the contractual provisions.
5. For all disputes arising from this policy, the place of jurisdiction is the registered office of the Swiss branch of Euler Hermes SA.

The Insured entrusts exclusively to Euler Hermes Services for the Policy period the task of assessing and monitoring the creditworthiness of his insured Buyers.

He hereby irrevocably authorizes Euler Hermes to instruct Euler Hermes Services to carry out, on his behalf and for his account, such assessment and monitoring of his insured Buyers. Euler Hermes Services will make the results of its activities directly and exclusively available to Euler Hermes only.

To the extent that the Insured discloses to Euler Hermes information concerning the creditworthiness of an insured Buyer in compliance with his contractual and legal obligations Euler Hermes is entitled to pass on this information to Euler Hermes Services. Euler Hermes Services will use the information received for the purpose of further analysis (credit ratings), the results of which may also be made available to third parties. In as far as this information is subject to data protection regulations, the Insured is entitled to refuse to let his information be used in this way, since the provi-sion of this information is voluntary in respect of such further use.

The Insured is obliged to pay to Euler Hermes Services, per insurance year begun, the credit rating fees indicated in the Specific Conditions of Insurance (A, 3) and determined by Euler Hermes in accordance with the authorisation given to them by Euler Hermes Services. These sums, plus VAT, will be invoiced to the Insured by Euler Hermes Services.

The invoiced amounts are payable within 10 days from the date of the invoice.

Ist eine Gebührenrechnung bei Fälligkeit nicht bezahlt, so wird der Versicherungsnehmer gemäss den gesetzlichen Bestimmungen aufgefordert, die rückständige Gebühr innert 14 Tagen, von der Absendung der Mahnung an gerechnet, zu bezahlen. Bleibt die Mahnung ohne Erfolg wird eine 2. Mahnung per Einschreiben gesendet.

If a premium has not been received by the respective due date, the Insured will be requested to pay the outstanding premium within 14 days after the date which the reminder is despatched. If there is no response to this reminder, a second reminder will be sent by registered mail.

Upon despatch of the second reminder by registered mail, an overdue fee of CHF 200.-/EUR 180.-/USD 200.- will be invoiced (determined on the basis of the Policy currency pursuant to Section 17 AVB). The invoiced overdue fee will be due regardless of whether the premium is paid follow-ing the second reminder. Euler Hermes is entitled to take legal steps to demand payment of the outstanding overdue fee in the event that pay-ment is not made.

Euler Hermes Services‘ liability in respect of the Insured is limited to wilful acts and gross negligence, unless the loss is due to breach of a material provision of the contract. Euler Hermes Services will only be liable up to the amount of compensation for a loss which is foreseeable under normal circumstances.

This agreement is valid for the duration of the Policy period and can only be terminated together with the Policy.

The provisions of the Policy also govern mutatis mutandis the contractual relationship between Euler Hermes Services and the Insured, in as far as they are materially applicable.

The GCI apply furthermore wherever applicable.

For all disputes arising from the credit assessment and monitoring mandate, the place of jurisdiction shall be the registered office of Euler Hermes Services Switzerland Ltd.

1. Insured accounts receivable
   For the duration of the Policy the Insured entrusts exclusively to Euler Hermes Services the task of collecting receivables from insured Buyers.
   
   After issuing the mandate in writing, the Insured undertakes not to negotiate with the Buyer or take any further action in the matter concerning the Buyer without the consent of Euler Hermes Services. The Insured shall hand over to Euler Hermes Services all relevant, mandate-related information. Euler Hermes Services shall proceed as it sees fit and as bound by its obligations. Euler Hermes Services reserves the right to reject mandates without stating the reasons or to discontinue debt collection at any time. Euler Hermes Services is entitled to commission lawyers to take legal steps. Such lawyers shall act for Euler Hermes Services in the Insured's name and are entitled to provide Euler Hermes Services at any time with a progress update. Euler Hermes Services is entitled to make the results of its activities available also to Euler Hermes.
2. Uninsured accounts receivable
   For accounts receivable for which no cover exists under the terms of § 10.6 GCI or for cases listed under § 10.5, Para. 2 GCI, the following charges apply.
   
   Placement fee per claim: CHF 120.- / EUR 100.- / USD 130.- Success commission as % of agreed amounts: Switzerland / Liechtenstein: 10% / EU: 15% / other countries: 20%
   
   The success commission includes all means by which the receivable is reduced, in particular payments, credits, charging of counterclaims, goods returns. Information in this context shall be forwarded immediately to Euler Hermes Services by the Insured. Any legal consequences and costs incurred as a result of a violation of this obligation shall be borne by the Insured.
   
   The Insured must pay such costs separately (e.g. lawyers' fees, third-party commissions, debt collection enforcement and court costs, out-of-pocket expenses, costs of correspondents etc.).
   
   Euler Hermes Services shall obtain the consent of the Insured prior to cost-intensive actions such as legal steps, commissioning a lawyer or an external debt collection partner. Settlements and debt moratoriums in respect of receivables require the consent of the Insured. Euler Hermes Services can furthermore conclude instalment payment agreements at its own discretion.
   
   As a matter of principle, Euler Hermes Services is entitled to request an advance payment from the Insured. Failure to pay such advance payment shall be deemed equivalent to a withdrawal from the collection mandate. Euler Hermes Services is entitled to reject debt collection mandates or discontinue a mandate without stating reasons.
3. Additional Provisions
   If the Insured withdraws his mandate, the full success commission shall be calculated on the total amount receivable or, as the case may be, on expected subsequent payments. The commission shall also apply in full in the event of any apparent circumvention of settlement by withdrawing the mandate.
   
   The collection fees and commissions plus statutory VAT shall be billed by Euler Hermes Services. The invoiced amounts shall be payable within 10 days from the date of the invoice.
   
   If a premium or commission has not been received by the respective due date, the Insured will be requested to pay the outstanding premium or commission within 14 days after the date which the reminder is despatched. If there is no response to this reminder, a second reminder will be sent by registered mail.
   
   Upon despatch of the second reminder by registered mail, an overdue fee of CHF 200.-/EUR 180.-/USD 200.- will be invoiced (determined on the basis of the Policy currency pursuant to Section 17 AVB). The invoiced overdue fee will be due regardless of whether the premium or commission payment is made following the second reminder. Euler Hermes is entitled to take legal steps to demand payment of the outstanding overdue fee in the event that payment is not made.
   
   Euler Hermes Services‘liability in respect of the Insured is limited to wilful acts and gross negligence, unless the loss is due to breach of a material provision of the policy. Euler Hermes Services will only be liable up to the amount of compensation for a loss which is foreseeable under normal circumstances.
   
   This agreement is valid for the duration of the Policy period and can only be terminated together with the Policy. For accounts receivable which remain covered after the Policy has been terminated, the costs shall be fully covered by the debt collection fee (A, 2). Euler Hermes Services shall continue to collect all other receivables for which a collection mandate has been issued prior to termination of the Policy.
   
   The GCI apply moreover wherever applicable.
   
   For all disputes arising from the collection mandate, the place of jurisdiction shall be the registered office of Euler Hermes Services Switzerland Ltd.

Euler Hermes, a company of the Allianz Group, is the world’s leading provider of credit insurance solutions for trade receivables, with subsidiaries and offices throughout Europe and the rest of the world. Euler Hermes offers B2B financial products that help our customers around the globe make smart choices about their business partners and give them the confidence to expand their business horizons.

Our insurance-related analyses are based on a solid foundation. We gather relevant information about companies and individuals, which has also entailed saving data about you. With that in mind, please find below information on how we process your data, in accordance with Art. 4 of the Federal Act on Data Protection Act (FADP).

Identity of party responsible

Euler Hermes Wallisellen branch of Euler Hermes SA, Richtiplatz 1, 8304 Wallisellen, Switzerland,
tel.: +41 (0) 44/283 65 65.

Contact information of data protection officer

Euler Hermes Wallisellen branch of Euler Hermes SA, Richtiplatz 1, 8304 Wallisellen, Switzerland,
tel.: +41 (0) 44/283 65 65, email: EHCHPrivacy@eulerhermes.com

Purpose of processing and legal basis

Personal data is processed in order to take steps at the request of your company prior to entering into a contract as well as to perform a contract to which your company is the contracting party. The legal basis for processing is Art. 4 (3) FADP and Art. 13 (1) FADP. We can also use your per-sonal data to conduct customer satisfaction surveys and implement advertising, by email, mail or telephone. You can object to this use for customer satisfaction surveys and/or advertising at any time. Such objections do not have to follow any particular form and should be sent to the Euler Hermes Wallisellen branch of Euler Hermes SA, Richtiplatz 1, 8304 Wallisellen, Switzerland.

Categories and origin of data

We process the following categories of data: name, email address, mailing address, sector, legal form, name of representative (e.g. managing director) as well as information pertaining to your contract (application data, underwriting data, banking relationship). In addition to the data you make directly accessible to us, we gather data from third parties (e.g. credit agencies) and sources available to the public.

Recipient

The recipients of personal data are companies of the Euler Hermes Group and reinsurers. In specific cases (double insurance, statutory subroga-tion, coinsurance), it may be necessary for personal data to be exchanged among the insurers involved.

Duration of storage/h4> We only keep your personal data for as long as necessary to fulfil the purposes for which we gathered it, or to meet our legal obligations or for as long as permitted by law (e.g. to defend against legal claims). Your personal data is subsequently deleted by us.

Rights of data subject

You have the right to information vis-a-vis Euler Hermes pursuant to Art. 8 FADP, the right to notification pursuant to Art. 12 and 13 FADP, the right to deletion pursuant to Art. 12 (2b) and Art. 15 (1) of the Federal Act and the right to restrict processing pursuant to Art. 9 FADP. In accordance with Art. 12 (2b) FADP objection can be raised against processing for reasons owing to the special situation of the data subject. Based on Art. 12 (2b) and Art. 15 (1) of the Federal Act on Data Protection of 19 June 1992 (FADP), you also have the right to block your data from being forwarded to third parties. Such objections do not have to follow any particular form and should be sent to the Euler Hermes Wallisellen branch of Euler Hermes SA, Richtiplatz 1, 8304 Wallisellen, Switzerland.

Right of appeal to the regulatory authority

You have the right to appeal to our competent regulatory authority (Federal Data Protection and Information Commissioner, Feldeggweg 1, CH-3003 Berne) if you are of the opinion that your personal data are not being processed in a lawful manner.

Necessity of data

We need the personal data you provide to conclude a contract with you. You are obliged to make the personal data available to us. Failure to provide such data could mean that it is not possible to conclude a contract.