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. Creditor

    An entity (person or institution) that extends credit by giving ...
  3. Commercial

    Relating to commerce. In the investment field, the term "commercial" ...
  4. Debtor

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

    The risk that an investment's returns could suffer as a result ...
  6. Export

    A function of international trade whereby goods produced in one ...
RELATED FAQS
  1. What is political risk and what can a multinational company do to minimize exposure?

    For multinational companies, political risk refers to the risk that a host country will make political decisions that will ...
  2. What risks do organizations face when engaging in international finance activities?

    When an organization decides to engage in international financing activities, they also take on additional risk as well as ...
Related Articles
  1. Options & Futures

    Explaining The World Through Macroeconomic Analysis

    From unemployment and inflation to government policy, learn what macroeconomics measures and how it affects everyone.
  2. Bonds & Fixed Income

    6 Factors That Influence Exchange Rates

    Find out how a currency's relative value reflects a country's economic health and impacts your investment returns.
  3. Investing Basics

    Why Country Funds Are So Risky

    High returns come at a price, but country funds may still be a good bet.
  4. Retirement

    Risk And Diversification

    Safeguarding your portfolio involves a few simple steps.
  5. Insurance

    Life Insurance: How Much Does Age Raise Your Rate?

    If you need life insurance, try to get it before your next birthday. Here's why.
  6. Retirement

    Healthcare: What Are You Really Paying For?

    Long-term care costs rise fast and long-term care providers bundle services together, making it tougher for families to understand what they are paying for
  7. Retirement

    4 Myths You Don’t Know About Medicare

    Here are four common misconceptions about Medicare, the federal government’s health insurance program for people who are 65 and older or disabled.
  8. Professionals

    Does the Middle-Class Need LTC Insurance?

    Long-term care insurance is as expensive as it is necessary for many people, but is it right for all financial advisor clients?
  9. Insurance

    What Happens If Your Insurance Company Goes Bankrupt?

    When insurance companies go bankrupt or face financial difficulty, it's bad news for policy holders.
  10. Insurance

    Which States Have the Cheapest Home Insurance?

    You can't choose where you live by its insurance rates. But if you did, these are the states to pick.

You May Also Like

Hot Definitions
  1. Sunk Cost

    A cost that has already been incurred and thus cannot be recovered. A sunk cost differs from other, future costs that a business ...
  2. Technical Skills

    1. The knowledge and abilities needed to accomplish mathematical, engineering, scientific or computer-related duties, as ...
  3. Prepaid Expense

    A type of asset that arises on a balance sheet as a result of business making payments for goods and services to be received ...
  4. Gordon Growth Model

    A model for determining the intrinsic value of a stock, based on a future series of dividends that grow at a constant rate. ...
  5. Cost Accounting

    A type of accounting process that aims to capture a company's costs of production by assessing the input costs of each step ...
  6. Law Of Supply

    A microeconomic law stating that, all other factors being equal, as the price of a good or service increases, the quantity ...
Trading Center