The insurance guarantee is one of the insurance activities. It is a written commitment of the insurance undertaking (guarantor) to pay to the beneficiary (the entity for whom the guarantee was issued) a specific sum of money, at his request and a statement, in a situation in which the debtor (the applicant for the guarantee) fails to fulfil his obligations (specified in guarantee) towards the beneficiary. In practice, insurance guarantees mainly serve as collateral for the investor in the investment process in the event of a random event specified in the guarantee contract. In the practice of trading, the insurance guarantee is widely used, although the law mentions it only in a few situations.
In particular, the following types of warranty can be distinguished:
- insurance guarantee of the payment of the deposit - used at the tender stage; is the equivalent of the cash deposit of the entrepreneur entering the tender; thanks to it, the entrepreneur can participate in the tender without involving his funds;
- insurance guarantee on the proper performance of the contract - is issued to secure the proper performance of the contract by the trader;
- insurance guarantee for removing defects or faults - issued at the request of the entrepreneur implementing the investment; obliges the guarantor to pay the guarantee at the beneficiary's request if the entrepreneur has failed to perform or improperly specified obligations under the contract for the removal of defects and faults disclosed after the completion of the investment,
- insurance advance payment guarantee - commitment of the guarantor to pay the guarantee to the beneficiary, at the written request and statement of the beneficiary in a situation where the entrepreneur (the principal of the guarantee) failed to perform the contract and did not return within the specified period the advance payment which he had previously collected from the beneficiary for the investment;
- insurance guarantee of the payment of customs duties - it is a security for covering the amounts resulting from customs debts when the debtor does not have adequate financial resources to pay customs and tax liabilities. It is intended for business entities that trade goods with foreign countries and is one of the acceptable customs duties collaterals. The beneficiary of the guarantee is the customs house, and its principal is the entity that imports goods or runs a customs warehouse.
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