We hope that our extensive glossary of common (and some not-so-common)
insurance terms and phrases proves helpful to you! Simply start
below by choosing the first letter of the word or phrase you want to
learn more about.
A - B - C - D - E - F - G - H - I - J - K - L - M
N - O - P - Q - R - S - T - U - V - W
GAP INSURANCE - An automobile insurance option,
available in some states, that covers the difference between a
car’s actual cash value when it is stolen or wrecked and
the amount the consumer owes the leasing or finance company. Mainly
used for leased cars. (See Actual
cash value)
GENERALLY ACCEPTED ACCOUNTING PRINCIPLES/GAAP -
Generally accepted accounting principles (GAAP) accounting is used in financial
statements that publicly-held companies prepare for the Securities and Exchange
Commission. (See Statutory accounting
principles / SAP)
GENERIC AUTO PARTS - Auto crash parts produced by
firms that are not associated with car manufacturers. Insurers consider these
parts, when certified, at least as good as those that come from the original
equipment manufacturer (OEM). They are often cheaper than the identical part
produced by the OEM. (See Crash parts; Aftermarket parts; Competitive
replacement parts; Original
equipment manufacturer parts / OEM)
GLASS INSURANCE - Coverage for glass breakage caused by all
risks; fire and war are sometimes excluded. Insurance can be bought for windows,
structural glass, leaded glass, and mirrors. Available with or without a deductible.
GRADUATED DRIVER LICENSES - Licenses for younger drivers
that allow them to improve their skills. Regulations vary by state, but often
restrict night time driving. Young drivers receive a learner’s permit,
followed by a provisional license, before they can receive a standard drivers
license.
GRAMM-LEACH-BLILEY ACT - Financial services legislation,
passed by Congress in 1999, that removed Depression-era prohibitions against
the combination of commercial banking and investment-banking activities. It allows
insurance companies, banks, and securities firms to engage in each others’ activities
and own one another.
GROUP INSURANCE - A single policy covering a group of individuals,
usually employees of the same company or members of the same association and
their dependents. Coverage occurs under a master policy issued to the employer
or association.
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GUARANTEE PERIOD - Period during which the level
of interest specified under a fixed annuity is guaranteed.
GUARANTEED DEATH BENEFIT - Basic death benefits
guaranteed under variable annuity contracts.
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GUARANTEED INCOME CONTRACT / GIC - Often an
option in an employer-sponsored retirement savings plan. Contract between
an insurance company and the plan that guarantees a stated rate of return
on invested capital over the life of the contract.
GUARANTEED LIVING BENEFIT - A guarantee in
a variable annuity that a certain level of annuity payment will be maintained.
Serves as a protection against investment risks. Several types exists.
GUARANTEED REPLACEMENT COST COVERAGE - Homeowners
policy that pays the full cost of replacing or repairing a damaged or destroyed
home, even if it is above the policy limit. (See Extended
replacement cost coverage)
GUARANTY FUND - The mechanism by which solvent
insurers ensure that some of the policyholder and third party claims
against insurance companies that fail are paid. Such funds are required
in all 50 states, the District of Columbia and Puerto Rico , but the
type and amount of claim covered by the fund varies from state to state.
Some states pay policyholders’ unearned premiums – the
portion of the premium for which no coverage was provided because the
company was insolvent. Some have deductibles. Most states have no limits
on workers compensation payments. Guaranty funds are supported by assessments
on insurers doing business in the state.
GUN LIABILITY - A new legal concept that holds
gun manufacturers liable for the cost of injuries caused by guns. Several
cities have filed lawsuits based on this concept. |
