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Accounts Receivable Insurance

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Accounts Receivable Insurance
An insurance policy providing coverage in the event a company is unable to collect on its accounts receivable, especially under certain, specified circumstances. Accounts receivable insurance helps a company maintain regular cash flow. See also: Allowance for Bad Debts.


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Citizens Bank recently assisted the company in exploring foreign accounts receivable insurance and trade letters of credit.
3 million payment will be made to it from Export Development Canada pursuant to the terms of an accounts receivable insurance policy taken by WellPoint to minimize commercial risks associated with a contract for an existing customer in South America.
One of the provisions of the term sheet is that the Company provides accounts receivable insurance on the accounts financed.
 
 
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