You are currently not signed in. Any products you have purchased will not be available until you Sign In.
For a personalized walk-through of IRMI Online, Request a Demo.

irrevocable letter of credit (ILOC)

The ILOC or standby letter of credit is a contractual agreement between a financial institution (a bank) and the party to which the letter is issued. It requires the bank to pay against drafts meeting the terms of the letter of credit. ILOCs may be used to collateralize monies owed by an insured under various types of risk financing programs (e.g., deductibles and paid loss retros). They may also be used as a form of guarantee in the construction context, where they have the advantage of not being subject to the preference claim in a bankruptcy filing.

More Risk Finance and Captives Information from IRMI
Books, Manuals, Newsletters IRMI
Risk Financing IRMI Online ReferenceConnect
Captive Insurance Company Reports IRMI Online ReferenceConnect
Captive Practices and Procedures IRMI Online ReferenceConnect
Captives and the Management of Risk IRMI Online ReferenceConnect
The Risk Report IRMI Online ReferenceConnect
Free Risk Financing Articles in
25 Risk-Conquering Ideas
Risk Finance
Captive Insurance
Additional Insured Insurance Law
Insurance Continuing Education Courses from IRMI
Ethics Considerations for P&C Insurance Professionals (CE)
Ethics in the P&C Insurance Workplace (CE)


Social Media

User ID: Subscriber Status:Free