Irrevocable letter of credit ILOC

{
  "id": "MLC-T-INS-001921",
  "term": "Irrevocable letter of credit ILOC",
  "field": "Insurance and risk management",
  "definition": "A financial instrument issued by a bank guaranteeing payment to a beneficiary on behalf of an applicant, which cannot be canceled or modified without the consent of all parties involved. In reinsurance, ILOCs are often used as collateral to secure an insurer's obligations to a reinsurer, particularly for unauthorized reinsurers. This provides financial assurance that claims will be paid.",
  "url": "https://mlchart.com/terminology/insurance/irrevocable-letter-of-credit-iloc/"
}