![]() when the Local Policy limit is exhausted (DIL).when a claim is not covered under a Local Policy (DIC) and.1įIC and DIC/DIL coverages are mutually exclusive and cannot co-exist for the same entity, so careful attention must be paid to ensure the clauses function as intended and avoid unforeseen coverage, regulatory or financial consequences.ĭIC/DIL coverage is typically provided under a Master Policy 2 to ensure consistent terms and limits throughout the Controlled Master Program (CMP) by providing coverage: While the FIC is certainly a cost-effective measure to centrally manage foreign exposures, the mechanics by which it reduces the risk of violating local regulatory requirements carry important limitations that all stakeholders must understand upfront.įurther, a policy may include both FIC and Difference in Conditions/Difference in Limits (DIC/DIL) wording, with each provision functioning in a related, yet different manner to cover a parent’s worldwide exposures. In this context, the Financial Interest Clause (FIC or FINC) has emerged as a popular option to ensure coverage while remaining compliant, particularly where local exposures are difficult to quantify yet regulatory scrutiny is certain. ![]() Multinational clients are increasingly reliant on their insurance programmes to respond proactively, consistently and with certainty. Global solutions for local issues – FIC and DIC/DIL explained
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