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      Question

      Which of the following is NOT a direct party to a Letter

      of Credit (LC)?
      A Applicant Correct Answer Incorrect Answer
      B Beneficiary Correct Answer Incorrect Answer
      C Issuing Bank Correct Answer Incorrect Answer
      D Advising Bank Correct Answer Incorrect Answer
      E Insurance Company Correct Answer Incorrect Answer

      Solution

      The main parties to a Letter of Credit are: β€’ Applicant (Importer) β€’ Issuing Bank β€’ Beneficiary (Exporter) β€’ Advising or Confirming Bank Insurance companies are not direct parties, though they may provide cargo or credit insurance separately.

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