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General Agent
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1)An independent agent who represents one or more insurers with the authority to appoint sub-agents who report their business through the general agent, who receives an overriding commission for services provided. In some territories a general agent also sells insurance, while functioning in others solely as a manager.
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General Average
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In ocean marine insurance, a loss which is common to all interests, such as the hull owners, the cargo owners and the receivers of the freight and charges, etc., which may arise due to a peril to the entire venture, which requires a sacrifice or expenditure for the benefit of all. An example is the stranding of the vessel wherein the vessel must engage a tug to remove her from the strand. Without the tug's assistance, all would be lost. The expenses incurred are shared pro rata based on the value of each interest, whether insured or not.
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Golden Parachute Legal Expense
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A specialty insurance coverage designed specifically to provide reimbursement for the legal expenses of corporate executives that result from contesting denials of "golden parachute" employment contracts after a corporate takeover.
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Governing Classification
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In determining rates for compensation insurance, the principal occupation of the insured.
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Grace Period
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An amount of time (usually one month) after the life insurance policy's premium due date, during which the policy continues in effect when the premium due is not paid. Many policies which have cash values also provide an automatic premium loan provision, in which part of the cash value is used as a loan to pay the premium due, thereby keeping the policy in force for a longer period. Most state laws require a grace period in life insurance policies.
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Gross Premium
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In company language, the written premim before deducting any premium paid for reinsurance and, in some cases, before paying any return premium.
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Guaranteed Insurability
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Life and health insurance provisions which guarantee the insured the right and ability or purchase additional coverage without proving insurability.
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Guaranteed Issue
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Group insurance programs designed to offer affordable health coverage to a natural group, such as employees of an employer or members of an association and their families. The difference between this and other group insurances is that no proof of insurability is required. It is guaranteed that all participants will be issued. A single contract is provided for the entire group which outlines the standard benefits, terms and provisions that apply to all members of the group. These benefits, however, may be tempered by the age and size of the group. Individual certificates are usually issued to the members to verify that they are covered.
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Guaranty Fund
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An amount of money assessed certain insurers in a given state to reimburse policyholders and claimants of an insolvent insurer in that state. The fund may be created before an insolvency occurs (pre-assessment, as in New York) or afterward (post-assessment), and virtually all states now have such protection.
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Services