Key Benefits:
Translation 1
(State on 9 August 2005)
1. KUKE SA declares its willingness to reinsure the share, expressed as per cent, of the credit guarantees granted by BGRE to Swiss exporters or third parties (in particular banks), insofar as these guarantees cover risks arising from the Supply of export products of Polish origin.
2. The BGRE declares its willingness to reinsure the share, expressed as per cent, of the credit guarantees granted by KUKE SA to Polish exporters (and the banks financing them), to the extent that these guarantees cover risks arising from the supply of Swiss export products.
3. The final decision to reinsure is made on a case-by-case basis by KUKE SA or BGRE.
(1) This Agreement shall apply in the following cases:
(2) This Agreement shall not apply where the insurer grants, for an export contract, a cover to the principal agent and that the principal shall fix with its subcontractor (s) the reinsurer of the terms "if and when" in respect of the Risk to insure.
In the context of this Agreement:
| Working day |
One day the offices of the two credit insurers are open; |
| Credit Insurer (s) |
BGRE and KUKE SA or one of them; |
| Exports |
Goods and/or services delivered or provided, as the case may be, under the export contract; |
| Insurer |
The credit insurer that establishes the police; |
| Primary Agent |
The exporter who is a party to the contract with the foreign buyer; |
| Police |
An insurance policy or guarantee issued by the insurer; |
| Share of Reinsurance |
The value of the exports covered by the reinsurer, expressed as a percentage; |
| Reinsurer |
That of credit insurers that reassures the other in respect of a particular transaction. |
Credit insurers are based on the principle that exports from the reinsurer's country originate from the reinsurer. If, in a particular case, the insurer has reason to doubt it, the insurer immediately informs the other credit insurer and discloses the results of the investigation to which it has carried out the origin of the exports.
The types of policies and guarantees issued by the BGRE and by KUKE SA to which this Agreement applies shall be mentioned in Appendices 1 and 2. Each credit insurer shall notify the other, in writing, of the changes made to one of its types Policies or guarantees.
As a general rule, the credit insurer of the country with the largest share of the exports to be guaranteed, in terms of value, is the principal insurer. Credit insurers may derogate from this rule by mutual agreement, taking into account the specific circumstances of the case.
1. The share of reinsurance shall be calculated pro rata from the shares of the Swiss and Polish origin of the exports to be reassured, on the basis of the information supplied by the person who filed the application for insurance. The ratio between exports of Swiss and Polish origin is the determining criterion.
2. When the transaction to be insured includes exports originating in one or more third countries (the country of the foreign buyer is considered to be a third country), the credit insurance that covers the risk is that of the exporter under the Responsibility for which this share is carried out. Credit insurers may agree on another method of calculation to determine the share of reinsurance.
If the share from third countries cannot be determined unambiguously, the insurer will grant its guarantee to the share from third countries without reinsurance. If, in particular cases, the insurer is not in a position to assume the full risks for deliveries from third countries, it may agree with the reinsurer of a risk allocation on the basis of the relationship between the Part of Swiss origin and the Polish share of exports.
Annex A provides examples for the calculation of the share of reinsurance.
1. If the reinsurer has committed to reinsure, it shall pay to the insurer the amount of reinsurance agreed upon when the insurer is obliged to pay compensation under the policy.
2. Unless otherwise agreed, the reinsurer shall assume the share of reinsurance which is the responsibility of the insurer at the insurance coverage rate set by the insurer in its policy. However, the reinsurer is not obliged to consent to reinsurance going beyond its maximum coverage rate.
3. The reinsurer agrees to pay the insurer an amount equal to the share, expressed in percent, of the compensation paid by the insurer under the policy. Payment must be made within 30 working days of the date on which the reinsurer has been informed by the insurer that compensation has been paid.
4. In case of damage before delivery, the reinsurer must also pay compensation in proportion to the share of reinsurance, if this risk is covered by the police. In such a case, the amount of the payment shall not be calculated on the basis of the cost of the shares of the exports in question, but according to the share of the reinsurance relating to the total damage calculated on the basis of the cost of return.
5. The reinsurer undertakes not to oppose the payment of compensation if it is required by the terms of the policy, to the extent that the information contained in Appendices 1 and 2 or the information that the insurer has given to the reinsurer in connection with the The procedure described in Art. 13, correspond to the provisions of the police.
6. The reinsurer undertakes to inform the insurer of any problems of which he would be informed and which could affect the execution of the contract of delivery or of the related credit agreements.
1. The Insurer undertakes to inform the Reinsurer of any change in the police, the extent and type of the case financed by an export credit or the relevant contractual rules, insofar as this may have effects on the Covered risk.
2. The Insurer undertakes to consult the reinsurer before taking a decision on the measures to be taken or the instructions to be given to the policyholder in the event of an event likely to aggravate the risk covered or If the disaster is imminent.
3. If, after payment of an allowance, the insurer receives a refund or retains a portion of the payment, the insurer must, within 30 working days, transfer to the reinsurer the amount corresponding to the share of the reinsurance.
4. The insurer must inform the reinsurer without delay if it learns that a debtor has not made a payment due in depreciation of a claim covered by the police.
5. At the request of the reinsurer, the insurer must make available to the insurer a copy of all documents relating to a matter in its possession.
6. The Insurer agrees to inform the Reinsurer as soon as the liabilities arising from the policy are terminated.
The reinsurer is entitled to a reinsurance premium:
The Insurer has the right to deduct a maximum of 10 % of the sums quoted in the letter. (a) and (b) in remuneration of its management costs.
2. The reinsurance premium shall be payable within 30 working days from the one in which the insurer has cashed the premium.
3. If the policyholder obtains a refund of the premium from the insurer, the reinsurer is in principle required to give back to the insurer, at his request, the share of the premium reimbursed corresponding to the share of the premium paid to him-deduct The amount withheld for administrative expenses -.
1. If the origin of the export products, once the reinsurance is definitively confirmed, modifies, in terms of value, more than 10 % in its composition, or if the ratio between the shares of the exports of the principal agent and Those of the subcontractors shall be amended by more than 10 % in value, the insurer shall inform the reinsurer, each of which may then require the adjustment of the share of reinsurance.
2. If this adaptation is made, are adapted accordingly to the amounts which the insurer and the reinsurer have to each other in the form of bonuses, rights and participation in the costs of legal proceedings or reduction costs or Damage prevention.
1. The Insurer will consult with the reinsurer before taking legal action or claiming recovery fees, the costs of which exceed a total of 10 % of the outstanding amount.
The reinsurer is required to participate, in proportion to its share of reinsurance, in the expenses incurred by the insurer in order to obtain a refund or to enter into a judicial procedure, to the extent that the insurer is obliged, under the terms of the The police have established, assume or reimburse costs to the policyholder. Payment will be made within 30 working days from the date of the communication of the fees.
2. If the Insurer wishes to dispose of, remit or cancel claims which belong to it economically or legally after payment of an indemnity, the Insurer must obtain the agreement of the reinsurer.
The procedural rules for the implementation of this Convention shall be governed by Appendix 3.
1. If a request for rescheduling of debt is made by the country of the purchaser or borrower, the credit insurers shall consult each other to determine how to resolve any problems arising from it. However, the final decision will be taken by the insurer.
2. If the covered debt is included in a debt rescheduling agreement with the country of the purchaser or borrower, the insurer consults the reinsurer if it wishes to transfer, exchange or remit the debt relating to the insurance policy.
3. The Insurer is entitled to indemnify against the contractual term, without observing a period of payment, which is generally provided for in the payment of compensation.
Unless otherwise agreed by credit insurers, all payments relating to the different reinsurance cases shall be made in the currency in which the police are denominated.
The Contracting Parties shall endeavour to resolve disputes arising out of this Agreement amicably.
2. Disputes which cannot be resolved amicably shall be decided by a three-person arbitral tribunal. Each Contracting Party shall designate a arbitral judge, and the two appointed judges shall, in turn, appoint the presiding judge.
The arbitral tribunal shall sit in the country of the insurer: in Warsaw, if it is KUKE SA; in Zurich, if it is the BGRE. The procedure is conducted in English. The arbitral tribunal shall also determine the procedure in accordance with the principles of the rule of law.
1. The two Contracting Parties shall sign this Agreement, which shall enter into force on the day on which the BGRE communicates to KUKE SA that the constitutional requirements in Switzerland for the implementation of the said Agreement are fulfilled (ratification).
2. Each party to the agreement may denounce it for the end of a calendar year. Denunciation shall be in writing, with three months' notice. Pre-denunciation obligations continue to effect their effects.
(3) Contracting Parties may amend this Agreement at any time. Appendix 3 and all annexes may be amended at any time, with the written concurrence of BGRE and KUKE SA.
This Agreement has been drawn up in six originals, two in Polish, two in German and two in English, each receiving one copy in each language.
2. The Polish, German and English versions are equally authentic. The English version will nevertheless serve as a basis for interpretation. The working language is English.
| Ease |
Coverage Rate |
Covered Risks |
Remarks |
|
| Private debtor supplier credit (credit risk) |
Up to 85 % for economic risks Up to 90 % for political risks and natural disasters |
Economic and political risks: Economic risks include:
|
Coverage of contractual obligations arising from various export contracts with a credit term of two years or more. It includes the amount of the credit including interest and is valid until maturity. The payment period is 3 months. No payment period if the insolvency is legally established or if a bilateral agreement is concluded between the debtor country and the Republic of Poland on the restructuring of the debt including the insured property. Moratoria interests are not covered. |
|
| Public debtor supplier credit (credit risk) |
Up to 90 % for all risks |
Political risks include:
|
Coverage of contractual obligations arising from various export contracts with a credit term of two years or more. It includes the amount of the credit including interest and is valid until maturity. The payment period is 3 months. No payment period if the insolvency is legally established or if a bilateral agreement is concluded between the debtor country and the Republic of Poland on the restructuring of the debt including the insured property. Coverage for a public debtor is granted if the purchaser or guarantor represents, in one form or another, the public authority and cannot be declared insolvent, either legally or administratively. It may be a sovereign debtor, in other words an entity entrusted with the trust and credit of the State or any other public, regional, municipal or paraState entity, or of another public institution. Moratoria interests are not covered. |
|
| Private debtor buyer credit |
Up to 100 % for all risks |
Political risks include:
|
Buyer credit coverage may be granted to financial institutions that provide credits for a period of two years or more. The coverage is valid for repayment obligations under a credit agreement and includes the amount of the credit and interest as well as the bank's fees. KUKE SA may also cover the amount of the credit for the financing of the insurance premium. If the insured person is obliged to terminate the contract by reason of a decision of the Polish Government or the instructions of KUKE SA, the insured person is entitled to be compensated for the amount he will have to pay to the debtor because of the breach of the contract. The coverage is valid until the deadline. Moratoria interests are not covered. Payment Period: 3 months No payment period if the insolvency is legally established or if a bilateral agreement is concluded between the debtor country and the Republic of Poland on the restructuring of the debt including the insured property. |
|
| Public Debtor Buyer Credit |
Up to 100 % for all risks |
Political risks include:
|
Buyer credit coverage may be granted to financial institutions that provide credits for a period of two years or more. The coverage is valid for repayment obligations under a credit agreement and includes the amount of the credit and interest as well as the bank's fees. KUKE SA may also cover the amount of the credit for the financing of the insurance premium. If the insured person is obliged to terminate the contract by reason of a decision of the Polish Government or the instructions of KUKE SA, the insured person is entitled to be compensated for the amount he will have to pay to the debtor because of the breach of the contract. Coverage is valid up to maturity. Moratoria interests are not covered. Payment Period: 3 months No payment period if the insolvency is legally established or if a bilateral agreement is concluded between the debtor country and the Republic of Poland on the restructuring of the debt including the insured property. |
|
| Private debtor manufacturing risk |
Up to 85 % for economic risks Up to 90 % for political risks |
The ability of the insured to honour the export contract due to an economic or political risk.
|
Coverage may be granted to the exporter (as part of a supplier credit coverage or if a buyer's credit coverage has been granted). It relates to a risk of a duration of two years or more and relates to the costs and expenses incurred by the insured in the performance of his contractual obligations. The payment period is 6 months. No time limit for payment in case of insolvency law. |
|
|
||||
| Public debtor manufacturing risk |
Up to 90 % for all risks |
Political risks include:
|
Coverage may be granted to the exporter (as part of a supplier credit coverage or if a buyer's credit coverage has been granted). It relates to a risk of a duration of two years or more and relates to the costs and expenses incurred by the insured in the performance of his contractual obligations. The payment period is 6 months. No time limit for payment in case of insolvency law. |
|
| Coverage of security risks |
Function of the debtor's status |
Function of the debtor's status |
The cover may cover a deposit refund guarantee or a guarantee of a good end. Guarantee coverage is generally granted in addition to a cover of the manufacturing risk for public or private debtors. |
|
| I |
|
| Ease: |
Debt coverage |
| Type: |
Warranty |
| Beneficiary of guarantee: |
The exporter or a third party (including a bank) |
| Conditions of Assurance: |
Federal Export Risk Guarantee Act |
| Export Risk Guarantee Order |
|
| Exporter's residual amount: |
At least 5 % |
| Coverage rate: |
Up to 95 % |
| Calculation Basis: |
Export Price by Export Contract |
| Risks covered: |
|
|
|
|
|
|
|
|
|
| -submitted by public debtors; |
|
| -submitted by private debtors, |
|
| -owned by a community or an institution of public law, or |
|
| -whose claim benefits from a public bond or is guaranteed by a bank approved by the BGRE, or |
|
| -performing public duties, the economic risk being limited to the obligations of public or private customers who, on their side, carry out public tasks; |
|
|
|
|
|
| II |
|
| Ease: |
Manufacturing risk cover (pre-shipment risk) |
| Type: |
Warranty |
| Beneficiary of guarantee: |
The exporter and, in principle, also a third party (including a bank) |
| Conditions of Assurance: |
Federal Export Risk Guarantee Act |
| Export Risk Guarantee Order |
|
| Exporter's residual amount: |
At least 5 % |
| Coverage rate: |
Up to 95 % |
| Calculation Basis: |
Cost of return |
| Risks covered: |
Imputed or actual possibility of delivery due to a post-order increase in political, economic or transfer risks, which may be covered by c. I, or lack of means of transport abroad. |
| III |
|
| Ease: |
Coverage of bid guarantees and delivery guarantees (only in addition to a warranty as per c. I or II). |
| Type: |
Warranty |
| Beneficiary of guarantee: |
The exporter or a third party (including a bank) |
| Conditions of Assurance: |
Federal Export Risk Guarantee Act |
| Export Risk Guarantee Order |
|
| Exporter's residual amount: |
At least 5 % |
| Coverage rate: |
Up to 95 % |
| Calculation Basis: |
Amount of bid guarantee or delivery guarantee |
| Risks covered: |
|
|
This appendix regulates procedural matters within the meaning of s. 13 of the Agreement governing reciprocal reinsurance obligations between KUKE SA and BGRE.
The reinsurer must send an account, invoice or reference number to the insurer at the latest when he has received the policy (Annex F), so that the insurer can transfer the reinsurance premium as provided for in s. 10, c. 1 and 2.
If, in a disaster, the insurer claims a right to the reinsurer, the insurer must provide the insurer with the following information:
In the case of a refund, the insurer must give the reinsurer the following information:
The Insurer advises the reinsurer when his or her obligations under the policy are due.
Example 1
Contract price refers to 120 units
Delivery-Country A: 70 units
Delivery-Country B: 50 units
| Coverage by Insurer (A): |
100 % |
| Coverage by Reinsurer (B): |
95 % |
Calculation of the share of the reass U Rance
| 50 ' 95 |
= |
4750 ' 100 |
= |
39.58 % |
| 120 ' 100 |
12,000 |
Example 2
Contract price refers to 120 units
Delivery-Country A: 70 units
Delivery-Country B: 50 units
| Coverage by Insurer (A): |
95 % |
| Coverage by Reinsurer (B): |
95 % |
Calculation of the share of the reass U Rance
| 50 ' 95 |
= |
4750 ' 100 |
= |
41.67 % |
| 120 ' 95 |
11,400 |
Example 3
Contract price refers to 120 units
Delivery-Country A: 60 units
Delivery-Country B: 40 units
Delivery-Country C: 20 units
| Coverage by Insurer (A): |
100 % |
| Coverage by Reinsurer (B): |
95 % |
Calculation of the share of the reass U Rance
| 40 ' 95 |
= |
3800 ' 100 |
= |
38.00 % |
| 100 ' 100 |
10,000 |
The share of reinsurance refers to the total value of 120 units. The reinsured amount would therefore correspond to 45.6 units.
Example 4
Contract price refers to 120 units
Delivery-Country A: 60 units
Delivery-Country B: 40 units
Delivery-Country C: 20 units
| Coverage by Insurer (A): |
95 % |
| Coverage by Reinsurer (B): |
95 % |
Calculation of the share of the reass U Rance
| 40 ' 95 |
= |
3800 ' 100 |
= |
40.00 % |
| 100 ' 95 |
9500 |
The share of reinsurance refers to the total value of 120 units. The reinsured amount would therefore correspond to 48 units.
Example 5
Contract price refers to 120 units
Delivery-Country A: 60 units
Delivery-Country A: 40 units
Delivery-Country C: 20 units
| Coverage by Insurer (A): |
100 % |
| Coverage by Reinsurer (B): |
95 % |
Calculation of the share of the reass U Rance
| 40 ' 95 |
= |
3800 ' 100 |
= |
31.66 % |
| 120 ' 100 |
12,000 |
| 60 ' 95 |
= |
5700 ' 100 |
= |
47.50 % |
| 120 ' 100 |
12,000 |
Example 6
Contract price refers to 120 units
Delivery-Country A: 40 units
Delivery-Country A: 60 units
Delivery-Country C: 20 units
| Coverage by Insurer (A): |
95 % |
| Coverage by Reinsurer (B): |
95 % |
Calculation of the share of the reass U Rance
| 60 ' 95 |
= |
5700 ' 100 |
= |
50.00 % |
| 120 ' 95 |
11,400 |
| 80 ' 95 |
= |
7600 ' 100 |
= |
66.6 % |
| 120 ' 95 |
11,400 |
Note:
If the insurer and the reinsurer offer different coverage rates depending on the risk, the average coverage rate is applied. Example:
| Political Risks: |
95 % |
| Economic risks before delivery: |
85 % |
| Economic Credit Risks: |
90 % |
| Average Rate: |
90 % |
From:
TO:
We refer to our agreement
We propose to reinsure the following case:
Our reference:
Exporter from our country:
Exporter from your country:
Their contractual relationship:
Project:
Buyer/Country:
Borrower/country:
Guarantor/Guarantees:
Contract Value:
Interest:
Composition of deliveries (indication of the value of the goods/services according to the share of the country concerned/third country deliveries):
Duration of Risk:
Repayment Terms:
Specific comments on the case:
Type of coverage requested:
Amount of credit:
Interest:
Lender:
Estimated amount of:
Estimated Reinsurance Share (Calculation):
Premium rate (indication of base amount) /deadline:
Specific conditions:
Conditions for Recovery:
Remarks:
Date: Signature:
TO:
From:
We refer to your provisional application form for:
Your n O Of ref.:
Our n O Of ref.:
Remarks:
This provisional response form is not legally binding. Before deciding on the granting of reinsurance, we must carry out a more detailed risk analysis; we will also need the agreement of our decision-making body or the supervisory authorities.
Date: Signature:
* Please delete what is wrong
From:
TO:
We refer to our agreement
And your interim response from the
Our n O Of ref.:
Your n O Of ref.:
We propose to reinsure the following case under the following conditions:
Exporter from our country:
Exporter from your country:
Their contractual relationship:
Project:
Buyer/Country:
Borrower/country:
Guarantor/Guarantees:
Contract Value:
Interest:
Composition of deliveries (indication of the value of the goods/services according to the share of the country concerned/third country deliveries):
Duration of Risk:
Repayment Terms:
Specific comments on the case:
Type of coverage requested:
Amount of credit:
Interest:
Lender:
Total Amount Covered:
Specific conditions:
Conditions for Recovery:
Amount of premium payable:
The insurer's commitment to the applicant will terminate on
Remarks:
Date: Signature:
From:
TO:
We refer to our agreement
And your final request from the
Our n O Of ref.:
Your n O Of ref.:
Remarks:
Date: Signature:
* Please delete what is wrong
From:
TO:
We refer to our agreement
And your final response from the
Our n O Of ref.:
Your n O Of ref.:
We inform you that a police has been granted the ... The amount of the cover is:
The share of reinsurance shall be:
| The premium share is |
C |
= |
............................................................................... |
| A |
The premium must be paid to us:
| On: ............................. |
Amount: ......................... |
Premium Share: ............................. |
Amount payable to the reinsurer: ....................................... |
We will make the payment due within 30 working days from the date of receipt.
Other remarks:
Date: Signature:
