Dictionary

a b c d e f g h i j k l m n o p q r s t u v w x y z
Garage Policy

A policy that provides coverage for garage businesses (dealers, service stations, garages, parking lots, etc.). Includes coverage for Liability, Physical Damage, and Garagekeepers Losses arising out of owned, non-owned, and hired autos.

Garagekeepers Liability

A coverage that is part of the Garage policy. Covers a garage risk’s Legal Liability for customers’ autos in the care, custody, or control of the garage. At the insured’s option, can also apply without regard to fault, for an additional premium.

General Agent (GA)

An individual appointed by an insurer to administer its business in a given territory. A GA is responsible for building the agency and service force. Compensation is on a commission basis, although there may be additional expense allowances. Often called a Managing General Agent (MGA).

Grace Period

A period of time after premium due date during which a policy remains in force without penalty, even though the premium due has not been paid. If you don’t pay your premium on time, the grace period is the first policy provision to apply.

Group Contract

A contract of insurance made with an employer or other entity that covers a group of people identified as individuals by reference to their relationship to the entity. A Group contract may be Life insurance, Health insurance, or an Annuity. Group insurance is usually less expensive than individual coverages. Remember, you cannot form a group just to buy insurance. It must exist for some other purpose.

Group Life Insurance

Life insurance that a person is eligible to purchase through membership in a group. In an employer group, the employer receives the Master Policy and the employees receive Certificates of Insurance. Group Life has a grace period of 31 days and is convertible to individual coverage without a physical exam based upon current age.

Guaranteed Insurability

A rider in Life and Health contracts that permits the insured to buy additional prescribed amounts of insurance at prescribed future time intervals without evidence of insurability.

Guaranteed Issue

A policy that the insurer must issue. Under the Affordable Care Act health insurance policies are as of January 1, 2014 guaranteed issue. That means that the insurer must issue the policy, no matter the person’s health. Medicare Supplement Plans purchased in the open enrollment period are guaranteed issue. Medicare is also guaranteed issue.

Guaranteed Renewable

A contract that gives the insured the right to continue in force by the timely payment of premiums for a period of time as set forth in the contract. During that period of time, the insurer has no right to make any change in any provision of the contract other than a change in the premium rate for all insureds in the same class.