Foreign Credit Insurance Association - FCIA

AAA

DEFINITION of 'Foreign Credit Insurance Association - FCIA'

A federal agency that provides insurance for U.S. exporters. The Foreign Credit Insurance Association is a voluntary association formed in 1961 by some 50 U.S. insurance companies and sponsored by the Export-Import bank.

INVESTOPEDIA EXPLAINS 'Foreign Credit Insurance Association - FCIA'

The insurance provided protects the purchaser from both commercial risk (when the debtor is unable to pay due to their business situation) and political risk (when the debtor is unable to pay due to changes in the politics of a particular country). The Export-Import bank deals primarily with political risk, while the FCIA covers commercial risk.

RELATED TERMS
  1. Canadian Council Of Insurance Regulators ...

    An association that was created to advocate for an effective ...
  2. Commercial

    Relating to commerce. In the investment field, the term "commercial" ...
  3. Export

    A function of international trade whereby goods produced in one ...
  4. Creditor

    An entity (person or institution) that extends credit by giving ...
  5. Debtor

    A company or individual who owes money. If the debt is in the ...
  6. Political Risk

    The risk that an investment's returns could suffer as a result ...
Related Articles
  1. Explaining The World Through Macroeconomic ...
    Options & Futures

    Explaining The World Through Macroeconomic ...

  2. 6 Factors That Influence Exchange Rates
    Bonds & Fixed Income

    6 Factors That Influence Exchange Rates

  3. Why Country Funds Are So Risky
    Investing Basics

    Why Country Funds Are So Risky

  4. What risks do organizations face when ...
    Options & Futures

    What risks do organizations face when ...

comments powered by Disqus
Hot Definitions
  1. Last In, First Out - LIFO

    An asset-management and valuation method that assumes that assets produced or acquired last are the ones that are used, sold ...
  2. Ghosting

    An illegal practice whereby two or more market makers collectively attempt to influence and change the price of a stock. ...
  3. Elasticity

    A measure of a variable's sensitivity to a change in another variable. In economics, elasticity refers the degree to which ...
  4. Tangible Common Equity - TCE

    A measure of a company's capital, which is used to evaluate a financial institution's ability to deal with potential losses. ...
  5. Yield To Maturity (YTM)

    The rate of return anticipated on a bond if held until the maturity date. YTM is considered a long-term bond yield expressed ...
  6. Net Present Value Of Growth Opportunities - NPVGO

    A calculation of the net present value of all future cash flows involved with an additional acquisition, or potential acquisition. ...
Trading Center