confiscation, expropriation, nationalization (CEN), and deprivation
(CEND) insurance
Political risk coverage purchased
by businesses that have an ownership interest in property abroad, to cover loss
resulting from government nationalization of the property or other action by
the government that effectively deprives the insured of the property or restricts
its operations. Coverage may be structured to insure such current assets as
bank accounts, intercompany or bank loans, accounts receivable, inventory, retained
earnings, supplies, and work in progress. Deprivation coverage, which insures
against the risk of a government action preventing use of the asset (such as
denying a permit to run a plant), can be added to the basic CEN policy.