Vestoo insurance incident - letters of credit
Regarding the Vestoo incident that was in the news recently, was it the case that Vestoo (the cedant) lied about letters of credit from China Construction Bank? Would China construction bank have been listed in Schedule F, Part 3 then?
Comments
Sorry, I'm not familiar with that incident. I can maybe help you if you give me its particulars.
Note that if this is not discussed in the syllabus readings then you would not be responsible for it on the exam.
Yep, I know It wouldn't be tested but I was just curious if you had any comments on it since I'm pretty sure it is related to fraudulent letters of credit, and I'm trying to get my head around the concept and how it all fits into Schedule F. No worries though!
I believe the primary insurers would show the reinsurance companies involved on Schedule F, but the banks would probably not appear anywhere except on the letters of credit since they were the ones who issued them, as far as I understand.
(The amounts related to letters of credit would appear in Schedule F however.)