Can the insurance or settlement be revoked?

The insurance or the insurance settlement can be revoked in the following scenarios:

  • The receivable is invalid because of a legal dispute over the underlying goods/services between the seller and the debtor and the debtor wins.
  • The receivable never existed because it has been partially or completely forged.
  • The insurance provider notices existing payment difficulties at the time of insuring the invoices.

In such scenarios, the insurance provider can withdraw the insurance or demand back insurance payouts already executed.

Updated on March 26, 2019

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