What is protracted default?

Policies that include this cover pay out if a buyer is late in paying, and payment is still due after a pre-determined period (usually 60 days after due date of the invoice). After this period the buyer is presumed to be insolvent. After claims payment the trade credit insurer becomes the owner of the debt.

See also:
What kinds of risks are insured?
When does insolvency occur?
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