MLchartDataset catalogue

Letter of credit (LOC)

Term · Insurance and risk management · MLC-T-INS-001991

A financial instrument issued by a bank or financial institution, guaranteeing payment to a beneficiary on behalf of a client, provided that certain conditions are met. In insurance, an LOC can be used as collateral or security for deductibles, self-insured retentions, or reinsurance obligations. It provides a reliable form of financial assurance, reducing credit risk for the recipient.

Table 1. Record
IdentifierMLC-T-INS-001991
FieldInsurance and risk management
AbbreviationLOC
Record as JSON 
{
  "id": "MLC-T-INS-001991",
  "term": "Letter of credit (LOC)",
  "field": "Insurance and risk management",
  "definition": "A financial instrument issued by a bank or financial institution, guaranteeing payment to a beneficiary on behalf of a client, provided that certain conditions are met. In insurance, an LOC can be used as collateral or security for deductibles, self-insured retentions, or reinsurance obligations. It provides a reliable form of financial assurance, reducing credit risk for the recipient.",
  "abbreviation": "LOC",
  "url": "https://mlchart.com/terminology/insurance/letter-of-credit-loc/"
}

Record 1,915 of 3,708 in Insurance and risk management terminology (MLC-0106). Request the full dataset.