Article 1886. Insurance of guarantees

(1) In insurance of guarantees, the insurer, as guarantor, shall cover the financial losses incurred by the insured as a result of the non-performance or improper performance of the contractual obligations of the policy holder.
(2) In insurance of guarantees, the insured is a person designated by the policy holder, other than the policy holder.
(3) At the conclusion of the insurance contract, the insurer shall issue to the policy holder an insurance policy, and to the insured – a letter of guarantee.