The insurance premium is the amount obtained by multiplying the premium rate and the reported insured turnover. Premium rate is determined for each insurance contract based on the specifics of the insurable portfolio of the client (total annual sales – annual turnover based on open account terms, experience in credit risk management, the existence of earlier trade relationship with buyers, experience in debt collection, how much of the portfolio is given to insurance coverage, number of buyers, buyer country, economic sector). The agreed premium rate applies to the entire insurance period of one year and applies to total turnover from existing and new buyers covered by the insurance policy.