G
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G.A. in Full - An agreement in a cargo insurance whereby underwriters do not reduce a claim for general average contribution in event of underinsurance.
General Account - All premiums are paid into an insurer's general account. Thus, buyers are subject to credit-risk exposure to the insurance company, which is low but not zero.
General Average - A deliberate sacrifice or expenditure incurred for the common safety of a maritime adventure. Those interests that benefit from the sacrifice or expenditure contribute rateably towards the loss.
General Average Contribution - The proportion paid or payable by a saved interest involved in a general average act.
General Average - Deposit Paid by a consignee to obtain release of the cargo from the carrier following a general average act. This may be replaced by an underwriter’s guarantee.
General Average Guarantee - An undertaking by underwriters to pay the contribution due from a cargo assured on completion of the general average adjustment.
General Exclusions Clause - A clause in the institute Cargo Clauses 1982, which specifies risks that are excluded, irrespective of the risks covered elsewhere in the wording.
General Liability Insurance - Insurance designed to protect business owners and operators from a wide variety of liability exposures. Exposures could include liability arising from accidents resulting from the insured's premises or operations, products sold by the insured, operations completed by the insured, and contractual liability.
Good Faith - A basic principle of insurance. The assured and his broker must disclose and truly represent every material circumstances to the underwriter before acceptance of the risk. A breach of good faith entitles the underwriter to avoid the contract.
Grace Period - The length of time (usually 31 days) after a premium is due and unpaid during which the policy, including all riders, remains in force. If a premium is paid during the grace period, the premium is considered to have been paid on time. In Universal Life policies, it typically provides for coverage to remain in force for 60 days following the date cash value becomes insufficient to support the payment of monthly insurance costs.
Gross Leverage - The sum of net leverage and ceded reinsurance leverage. This ratio measures a company's gross exposure to pricing errors in its current book of business, to errors of estimating its liabilities, and exposure to its reinsurers.
Gross Premium - The net premium plus operating expenses, commissions and other expenses.
Guaranteed Insurability Option - See "future purchase option."
Guaranteed Issue Right - The right to purchase insurance without physical examination; the present and past physical condition of the applicant are not considered.
Guaranteed Renewable - A policy provision in many products which guarantees the policyowner the right to renew coverage at every policy anniversary date. The company does not have the right to cancel coverage except for nonpayment of premiums by the policyowner; however, the company can raise rates if they choose.
Guaranty Association - An organization of life insurance companies within a state responsible for covering the financial obligations of a member company that becomes insolvent.
