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Glossary
International programmes

Financial Interest Cover

Also: FINC · Financial Interest Cover

Solution that insures the loss of value of the parent company's stake in its subsidiary, instead of insuring the local asset.

In practice

It is used where non-admitted cover is prohibited and issuing a local policy is not viable. It indemnifies the parent company, not the subsidiary: it serves to protect the group's balance sheet, not to pay for reconstruction on the ground.

Where it is addressed

This term is covered in Gestión del programa and applies when taking out Programas Internacionales.

Related terms

Non-admittedCover granted from outside the country where the risk is located, by an insurer without local authorisation.Insurable interestEconomic relationship between the insured and the asset or person exposed to the risk. Without interest, there is no valid insurance contract.Master policyContract signed by the parent company that sets the group's cover standard and responds above or in default of the local policies.Cash before coverRule in force in several countries whereby cover does not commence until the premium has been effectively paid.DIC clauseClause of the master policy that covers the guarantees not included in the local policy, elevating the subsidiary to the group's standard.DIC ClauseClause of the master policy that completes the indemnity when the limit of the local policy is exhausted before the group's standard.
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