Dictionary of Insurance Terms -G-

-G-

• 
  General Agency System: Type
  of life insurance marketing system in which the general agent is an independent
  businessperson who represents only one insurer, is in charge of a territory,
  and is responsible for hiring, training, and motivating new agents.
• 
  General Average: In ocean marine
  insurance, a loss incurred for the common good that is shared by all parties
  to the venture.
• 
  General Damages: Damages awarded
  to an injured person for intangible loss which cannot be measured directly
  by dollars. Popularly known as “pain and suffering.” General damages are
  distinguished from special damages which are awarded for actual economic
  loss, such as medical costs, loss of income, etc.
• 
  General Liability Insurance:
  Coverage that pertains, for the most part, to claims arising out of the
  insured’s liability for injuries or damage caused by ownership of property,
  manufacturing operations, contracting operations, sale or distribution
  of products, and the operation of machinery, as well as professional services.
• 
  Generally
  Accepted Accounting Principles (GAAP): Principles of accounting and
  reporting business results developed by the American Institute of Public
  Accountants.
• 
  Glass Insurance: Protection for loss
  of or damage to glass and its appurtenances.
• 
  Good Student Discount: Reduction
  of automobile premium for a young driver at least sixteen who ranks in
  the upper 20 percent of his or her class, has a B or 3.0 average, or is
  on the Dean’s list or honor roll. It is based on the premise that good
  students are better drivers.
• 
  Grace Period: A specified period after
  a premium payment is due, in which the policyholder may make such payment,
  and during which the protection of the policy continues.
• 
  Graded Commission Scale: A
  commission scale providing for payment of a high first year commission
  and lower renewal commissions.
• 
  Gross estate: All of the assets and liabilities
  owned at death.
• 
  Gross Negligence: the intentional
  failure to perform a manifest duty in reckless disregard of the consequences
  as affecting the life or property of another
• 
  Gross Premium: The premium paid by the
  policyholder.
• 
  Gross Rate: The sum of the pure premium
  and a loading element.
• 
  Group Contract: A contract of insurance
  made with an employer or other entity that covers a group of persons identified
  as individuals by reference to their relationship to the entity.
• 
  Group Insurance: Insurance written
  on a number of people under a single master policy, issued to their employer
  or to an association with which they are affiliated.
• 
  Guaranteed Renewable Contract:
  A contract that the insured person or entity has the right to continue
  in force by the timely payment of premiums for a substantial period of
  time, during which period the insurer has no right to make unilaterally
  any change in any provision of the contract, while the contract is in force,
  other than a change in the premium rate for classes of policyholders.
• 
  Guaranty Fund: A fund, derived from
  assessments against solvent insurance companies, to absorb losses of claimants
  against insolvent insurance companies.