A letter addressed by a bank, at the insurance and responsibility of
a buyer of merchandise, to a seller, authorizing him to draw drafts
to a stipulated amount under specified terms and undertaking
conditionally or unconditionally to provide eventual payment for
drafts.
LOAN
RECEIPT
Document
signed by the Assured where he acknowledges receipt of money
advanced by the insurance company as an interest-free loan (instead
of payment of a loss) repayable to the insurance company only if the
loss is recovered from a third party and then only to the extent of
the recovery.
LOSS
OF MARKET
A
situation in which, for one reason or another, sound cargo is no
longer wanted by the consignee when it arrives. This is a
"business loss" not recoverable under a Marine Cargo
Policy; e.g., Christmas trees arriving in January undamaged.
