{
  "id": "clause-good-local-standard",
  "type": "clause",
  "languages": {
    "en": {
      "id": "clause-good-local-standard",
      "lang": "en",
      "type": "clause",
      "title": "Good Local Standard Clause",
      "shortDefinition": "The good local standard clause requires that a local policy within an international programme provides at least the conditions, scope of cover and premium level that an insurer licensed in the country concerned would ordinarily quote a comparable local client.",
      "synonyms": [
        "Good Local Standard",
        "GLS Policy"
      ],
      "linesOfBusiness": [
        "International programmes"
      ],
      "jurisdictions": [
        "Global"
      ],
      "tags": [
        "International programmes"
      ],
      "relations": {
        "relatedTerms": [],
        "partOf": [],
        "appliesTo": [
          "cov-property-all-risks",
          "cov-betriebshaftpflicht"
        ],
        "regulatedBy": [],
        "relevantFor": [],
        "insurableVia": [],
        "mitigatedBy": [],
        "comprises": [],
        "alternativeTo": [],
        "complementedBy": []
      },
      "attribute": null,
      "profile": null,
      "coverageProfile": null,
      "clause": {
        "kind": "condition",
        "origin": "international-programme",
        "favours": "neutral",
        "negotiability": "negotiable",
        "standardWordings": []
      },
      "legalBasis": [],
      "standards": [],
      "reviewStatus": "expert-reviewed",
      "reviewedBy": "Guido Hesse, Hesse Group Holding AG",
      "lastReviewed": "2026-09-04",
      "version": "0.1.0",
      "updated": "2026-09-03",
      "generated": {
        "by": "cursor-agent/claude-sonnet-5",
        "at": "2026-09-03T00:00:00.000Z"
      },
      "verified": [
        {
          "by": "human:ghesse",
          "at": "2026-09-04T00:00:00.000Z",
          "method": null
        }
      ],
      "staleAfter": null,
      "url": "https://hgh.ch/lexikon/en/knowledge/clause/good-local-standard-clause/",
      "alternateUrl": "https://hgh.ch/lexikon/de/wissen/klausel/good-local-standard-klausel/",
      "body": "## Purpose\n\nWithin an international programme, a group can rarely design each locally issued policy in detail, since different legal systems, language requirements and licensing procedures apply. The good local standard clause acts as a quality assurance: it obliges the programme leader to obtain, in every country, a policy that matches at least what local insurers would customarily offer comparable local clients — in terms of conditions, scope of cover and premium level.\n\n## Effect and limits\n\nGood local standard is deliberately not an exact benchmark but a point of reference; it leaves room for interpretation, since what is \"customary\" varies by class and country, and local licensing rules may limit scope regardless. In particular, the clause does not guarantee alignment with the often broader conditions of the master policy; DIC/DIL mechanisms exist for that purpose.\n\n## Negotiation and practice\n\nProgramme leaders should specify good local standard requirements together with fronting partners and local networks, for example through reference wordings or minimum checklists per class, to avoid disputes over whether a specific local policy is adequate. For highly specialised risks, a manuscript local policy drafted by the programme leader may be a more suitable alternative to a purely good-local-standard policy."
    },
    "de": {
      "id": "clause-good-local-standard",
      "lang": "de",
      "type": "clause",
      "title": "Good-Local-Standard-Klausel",
      "shortDefinition": "Die Good-Local-Standard-Klausel legt fest, dass eine lokale Police innerhalb eines internationalen Programms mindestens jene Bedingungen, jenen Deckungsumfang und jene Prämienhöhe bietet, die ein im betreffenden Land zugelassener Versicherer einem vergleichbaren lokalen Kunden üblicherweise anbieten würde.",
      "synonyms": [
        "Good Local Standard",
        "GLS-Police"
      ],
      "linesOfBusiness": [
        "Internationale Programme"
      ],
      "jurisdictions": [
        "Global"
      ],
      "tags": [
        "Internationale Programme"
      ],
      "relations": {
        "relatedTerms": [],
        "partOf": [],
        "appliesTo": [
          "cov-property-all-risks",
          "cov-betriebshaftpflicht"
        ],
        "regulatedBy": [],
        "relevantFor": [],
        "insurableVia": [],
        "mitigatedBy": [],
        "comprises": [],
        "alternativeTo": [],
        "complementedBy": []
      },
      "attribute": null,
      "profile": null,
      "coverageProfile": null,
      "clause": {
        "kind": "condition",
        "origin": "international-programme",
        "favours": "neutral",
        "negotiability": "negotiable",
        "standardWordings": []
      },
      "legalBasis": [],
      "standards": [],
      "reviewStatus": "expert-reviewed",
      "reviewedBy": "Guido Hesse, Hesse Group Holding AG",
      "lastReviewed": "2026-09-04",
      "version": "0.1.0",
      "updated": "2026-09-03",
      "generated": {
        "by": "cursor-agent/claude-sonnet-5",
        "at": "2026-09-03T00:00:00.000Z"
      },
      "verified": [
        {
          "by": "human:ghesse",
          "at": "2026-09-04T00:00:00.000Z",
          "method": null
        }
      ],
      "staleAfter": null,
      "url": "https://hgh.ch/lexikon/de/wissen/klausel/good-local-standard-klausel/",
      "alternateUrl": "https://hgh.ch/lexikon/en/knowledge/clause/good-local-standard-clause/",
      "body": "## Zweck\n\nIn einem internationalen Programm kann der Konzern die lokal ausgestellten Policen selten im Detail selbst gestalten, weil unterschiedliche Rechtsordnungen, Sprachanforderungen und Zulassungsverfahren gelten. Die Good-Local-Standard-Klausel dient als Qualitätsversprechen: Sie verpflichtet den Programmführer, in jedem Land eine Police zu beschaffen, die mindestens dem entspricht, was ortsansässige Versicherer vergleichbaren lokalen Kunden marktüblich anbieten würden – bezogen auf Bedingungen, Deckungsumfang und Prämienniveau.\n\n## Wirkung und Grenzen\n\nGood Local Standard ist bewusst kein exakter Massstab, sondern eine Orientierungsgrösse; er lässt Spielraum, da «marktüblich» je nach Sparte und Land variiert und lokale Zulassungsvorschriften den Umfang ohnehin begrenzen können. Die Klausel garantiert insbesondere keine Übereinstimmung mit den – oft breiteren – Bedingungen der Masterpolice; dafür sind DIC/DIL-Mechanismen vorgesehen.\n\n## Verhandlung und Praxis\n\nProgrammführer sollten Good-Local-Standard-Anforderungen mit Fronting-Partnern und lokalen Netzwerken konkretisieren, etwa durch Referenzwordings oder Mindestlistenpunkte je Sparte, um Streit über die Angemessenheit einer konkreten Lokalpolice zu vermeiden. Bei sehr spezialisierten Risiken kann eine manuskriptierte, vom Programmführer entworfene Lokalpolice als Alternative sinnvoller sein als eine reine Good-Local-Standard-Police."
    }
  }
}