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Glossary
International programmes

Admitted local policy

Also: Local policy · Admitted policy

Policy issued in the subsidiary's country by an entity authorised there, in accordance with its regulations and taxation.

In practice

It is what allows the claim to be paid in local currency, the premium to be deducted in the subsidiary, and the certificate required by the regulator or client to be presented. Many countries do not admit anything else.

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.Master policyContract signed by the parent company that sets the group's cover standard and responds above or in default of the local policies.Insurance Premium TaxTax levied on the premium in the country where the risk is located, with different rates and taxpayers in each jurisdiction.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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