A stipulation that limits the time the insurer has to dispute the information provided in the policy contract. This clause usually takes effect two or three years after the policy begins. In health insurance, this clause further states that claims cannot be denied due to a preexisting condition, except for those expressly named in the contract. In life insurance, this clause further states that a death benefit cannot be denied due to misrepresentation by the insured of their health condition at the time he or she took the policy out.

International Commercial Terms, known as “Incoterms,” are internationally accepted terms defining the responsibilities of exporters and importers in the arrangement of shipments and the transfer of liability involved at various stages of the transaction. Incoterms do not cover ownership or the transfer of title of goods. It is crucial to agree on an Incoterm at the start of a negotiation/quotation of a sale, as it will affect the costs and responsibilities involved in shipping, insurance and tariffs. The new Incoterms 2010 rules were revised by the International Chamber of Commerce and will become effective January 1, 2011. Four terms were eliminated (DAF, DEQ, DES, DDU) and two were added: Delivered at Place (DAP) and Delivered at Terminal (DAT). The modifications affect obligations, risk transfer, and cost sharing for the seller and buyer, resulting in better clarification and application of the eleven (11) Incoterms, and consistent with the way global trade is actually conducted since the last update in 2000.

ICC Official Rules for the Interpretation of Trade Terms : The 11 Incoterms consist of two groups and are listed below in order of increasing risk/liability to the exporter. Under the revised terms, buyers and sellers are being urged to contract precisely where delivery is made and what charges are covered. This should avoid double-billing of terminal handling charges at the port of discharge. References to “ship’s rail” were taken out to clarify that delivery means “on-board” the vessel. Insurance, electronic documentation, and supply chain security are addressed in more detail, and gender-neutral language is now used. INCOTERMS do not… Determine ownership or transfer title to the goods, nor evoke payment terms. Apply to service contracts, nor define contractual rights or obligations (except for delivery) or breach of contract remedies. Protect parties from their own risk or loss, nor cover the goods before or after delivery. Specify details of the transfer, transport, and delivery of the goods. Container loading is NOT considered packaging, and must be addressed in the sales contract. Remember, Incoterms are not law and there is NO default Incoterm!

This term is almost similar to CPT except that the seller has to arrange and pay for the insurance against the risks of loss or damage of the goods during shipment. The seller has to take the insurance and pay the freight. The buyer has to pay customs and unloading charges. He supports the risks of loss or damage when the goods are given to the first carrier.

This term is used for transport by rail, road, and inland waterways. The seller and exporter are responsible for the carriage of goods to the nominated destination and to pay freight for the first carrier. He is responsible to do custom clearance and arrange and pay carrier up to the agreed destination. The buyer is responsible to pay for import customs; unloading costs and bear the risks of loss/damage after the goods are given by the first carrier. Thus the buyer needs to take insurance when he takes the risk on delivery by the first carrier.

Seller bears cost, risk and responsibility for goods until made available to buyer at named place of destination. Seller clears goods for export, not import. DAP replaces DAF, DDU.

Seller bears cost, risk and responsibility until goods are unloaded (delivered) at named quay, warehouse, yard, or terminal at destination. Demurrage or detention charges may apply to seller. Seller clears goods for export, not import. DAT replaces DEQ, DES.