|Serving the Texas Golden Triangle For over 35 Years
| INSURANCE DEFINITIONS - 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.
Generation skipping tax: a transfer tax imposed on gift or inheritance to those at least two generations younger than the person making the transfer
Glass Insurance: Protection for loss of or damage to glass and its appurtenances.
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 Annuity: A pension plan providing annuities at retirement to a group of people under a master contract. It is usually issued to an employer for the benefit of employees. The individual members of the group hold certificates as evidence of their annuities.
Group Annuity Contract: A contract issued by a life insurance company that may be used as the funding instrument for benefits to be made in accordance with a pension plan. A single master contract provides that the group of persons participating in the plan will receive annuities during retirement. Individual certificates stating coverage may be issued to members of the group.
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 Creditor Life Insurance: Life insurance provided to debtors by a lending institution to provide for the cancellation of any outstanding debt should the borrower die. Normally term insurance limited to the amount of the loan.
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.
Group Life Insurance: Life insurance usually without medical examination, on a group of people under a master policy. It is typically issued to an employer for the benefit of employees, or to members of an association, for example a professional membership group. The individual members of the group hold certificates as evidence of their insurance.
Group Major Medical Plan: See Supplementary Major medical Insurance.
Group Ordinary Life Insurance: Group insurance plan providing life insurance
for employees. Traditional whole life policy is split into decreasing insurance protection and increasing cash values.
Group Paid-Up Life Insurance: Accumulating units of single premium whole life insurance and decreasing term insurance, which together equal the face amount of the policy. Provided through a group life insurance plan.
Group Permanent Plan: Type of pension plan in which cash value life insurance is issued on a group basis and cash values in each policy are used to pay retirement benefits when a worker retires.
Group Term Life Insurance: Most common form of group life insurance. Yearly renewable term insurance on employees during their working careers.
Group Universal Life Products (GULP): Universal life insurance plans sold to members of a group, such as individual employees of an employer. There are some differences between GULP plans and individual universal life plans; for instance, GULP expense charges generally are lower than those assessed against individual policies.
Guaranteed Insurability Option: (see "Future Increase Option")
Guaranteed Investment Contract: An investment contract with an insurer in which the insurer guarantees both principal and interest on a pension contribution.
Guaranteed Purchase Option: Benefit that can be added to a life insurance policy permitting the issured to purchase additional amounts of life insurance at specified times in the future without requiring evidence of insurability.
Guaranteed Renewable: A contract that the insured has the right to continue in force by the timely payment of premiums (1) until at least age 50 or (2) in the case of a policy issued after age 44 for at least five years from its date of issue, 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, except that the insurer may make changes in premium rate by classes.
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.
Guaranteed Renewable Contract: A health policy which the company guarantees to renew for life or until the insured reaches a specified age, usually 65.
Guaranty Fund: A fund, derived from assessments against solvent insurance companies, to absorb losses of claimants against insolvent insurance companies.
PLEASE NOTE!... Definitions shown were gathered from a variety of sources. Mitchell Insurance Agency makes no representations for the accuracy of this information.
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