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 |  | | << Back to Wellhead | | OIPA launches program for credit insurance March 2010 | |
| The OIPA continues its efforts to protect producers from future purchaser bankruptcies, forging a partnership with Euler Hermes and IMA to provide credit insurance to association members.
The partnership would give OIPA members access to credit insurance through Euler Hermes ACI.
“Oklahoma producers lost millions of dollars following the SemGroup bankruptcy,” OIPA President Mike Terry said. “Credit insurance is one way offer our members some form of protection from future losses.”
The insurance program would insure OIPA members against losses from buyer insolvencies and payment defaults and can be used to help evaluate potential buyers. The program also allows OIPA members to use their preferred independent insurance agent.
OIPA members participating in the program will receive a preferred rate, and all program participants with a loss ration of 20 percent or less will receive a renewal credit. Credits are set at up to 5 percent for members with insured revenues of less than $5 million and up to 10 percent for those with insured revenues of more than $5 million. All program participants are subject to a $10,000 minimum premium.
Euler Hermes is a French credit insurance company, and Euler Hermes ACI is its North American subsidiary. It is the oldest and largest insurance carrier in North America
“Cash flow is the lifeblood of any company, and an unprotected accounts receivable loss can open a hole in the bottom line. That is where trade credit insurance comes in,” Euler Hermes ACI Senior Vice President and National Sales Director John Pontin said. “A trade credit insurance program provides a valuable extension to a company’s credit management practices, helping a company to monitor its buyers and mitigate risk, as well as providing an insurance product that can indemnify the company should a bad-debt loss occur.”
For information about the OIPA’s credit insurance program, contact membership benefits consultant Regina Mullennix at 918-724-8551 or by e-mail at reginam@oipa.com. |
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