Applicant

In foreign trade insurance, the Applicant refers to the party that applies to the insurer to conclude an insurance contract and pays the premium, usually the exporter, importer, or the applicant under a letter of credit. Usage scenarios include: under CIF/CIP terms, the seller insures and acts as the applicant; under FOB/FCA terms, the buyer arranges insurance itself; when a letter of credit requires insurance, the applicant must be consistent with the L/C applicant. Notes: The applicant must have an insurable interest in the subject matter of insurance, otherwise the contract is void; in L/C transactions, the applicant's name must strictly comply with the L/C terms, otherwise the bank may refuse payment; the applicant is different from the Insured, who is the person entitled to claim the insurance proceeds, but they are often the same person. Difference from 'Beneficiary': the applicant is a party to the contract, while the beneficiary is the person entitled to receive the indemnity. In practice, the relationship between the applicant and the insured must be clarified to avoid claim difficulties due to unclear parties.