BLANK BILL OF EXCHANGE IN INSURANCE INDUSTRY

Transactions with blank bill of exchange require the knowledge of the law on negotiable instruments as otherwise, the bill of exchange may adversely affect its very holder, should the holder fail to act in accordance with the law. In business practice, the use of blank bills of exchange should be avoided and if such bill is issued, the drawer i.e. issuer should insert the „not to order“ clause thus preventing the possibility of its misuse. The Insurer and the Insured, as parties to the agreement based on which the bill of exchange is issued, should agree about its content and fully apply, when filling out the bill, not only the legal provisions but also the standards of business practice relating to negotiable instruments.