Every answer and its explanation appears here once you have finished the path. Each one then links to the matching glossary entry, where the concept is set out in full with its worked example.
1. A whole turnover policy and a single buyer policy do not buy the same thing. What exactly?
The first buys MUTUALIZATION, the second a CHOSEN exposure: the price gap the exporter takes for greed measures what it removed from the contract itself
The most natural request in the world, covering the two or three buyers that keep you awake and leaving the rest, is the one that costs most per insured name, and the reason is not commercial. The volume answer is what a buyer trained in procurement will apply instinctively, and it misses what is happening: it is not quantity that makes the price, it is the composition of the population. The one seeing a formal difference treats as declaration mechanics what is a difference in kind between a representative set and its peak.
Glossary entry · mutualisation2. The module says adverse selection has nothing moral about it. How does it work?
If the insured chooses which buyers to insure, it chooses the riskiest, NOT OUT OF MALICE but because it knows its book better than the insurer and it would be unreasonable to do otherwise: the loss ratio of a set selected that way is structurally higher than that of the book it came from
Selecting is not a breach, it is rational behavior, which is why the concealment answer is in the wrong register: there is nothing to hide, the insured says exactly what it wants to insure and it is the act of choosing that produces the effect. A whole turnover policy removes that selection by taking everything, good buyers finance bad ones, and the cost per buyer falls: that is mutualization at its simplest. The answer describing the insurer picking the best risks names a real and symmetrical phenomenon, cherry picking, which is not the one the price depends on here.
Glossary entry · antiselection3. Many exporters buy a whole turnover policy and think they are only buying reimbursement. What else do they receive?
Surveillance: the insurer follows a whole population, cross-checks its information with that of its other insureds, and sees incidents arriving on buyers the exporter has not yet identified as fragile; that information is often worth more than the indemnity because it prevents the shipment that will not be paid
This service has no equivalent on a single buyer policy, where the insurer looks at one name only, and it is a difference the rate gap does not state. The answer about litigation recovery names a real and separate service, often billed separately, which is not what distinguishes the two structures. The one about a rating usable with banks confuses management information, given to the insured to decide whether to ship, with a credit document meant for third parties.
Glossary entry · assurance-credit-export4. Between all and one, which carve-outs are accepted, and which one is refused?
Accepted are those resting on an OBJECTIVE AND STABLE test, geographic zone, product line, minimum outstanding, a self-insurance floor on small buyers; refused is the one leaving the insured a buyer by buyer choice, which brings adverse selection back through the window
These forms must be known to avoid all or nothing reasoning, and the line is simple: what matters is not the size of the perimeter but who decides its contours. The answer accepting any accurately declared carve-out confuses sincerity, which is owed anyway, with representativeness, which is the question. The one denying that intermediate forms exist is what a quick reading of the module produces, and it leads a management team to choose between two extremes that suit neither.
Glossary entry · souscription5. The module gives three questions to ask in order, and none is about price. Which ones?
Representativeness, does what I propose to insure resemble my book or is it its peak; service, do I need continuous surveillance or only reimbursement; and the destination of the receivable, does it stay with me or must it be readable by a third party
An exporter that answers these three questions knows which of the two structures suits it BEFORE asking for any quote, which changes the conversation with its broker entirely. The third is the one that gets forgotten and it decides certain files on its own: a receivable meant to be assigned to a bank often requires named cover the lender can read, and no mutualization consideration outweighs that need. The answer about country, term and loss record lists real underwriting data, used to price a structure once it has been chosen.
Glossary entry · credit-caution