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Insurance Glossary - G

Gatekeeper
At HMOs, the primary-care doctor-usually family practitioner, internist, pediatrician or obstetrician/gynecologist-who coordinates basic care and recommends tests, treatment and referrals to specialists.

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 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. This is a business insurance product.

Glass Insurance
Protection for loss of or damage to glass and its appurtenances.

Good Student Discount
Reduction of automobile premium for a young driver at least sixteen who ranks in the upper 20 percent of his or her class, has a B or 3.0 average, or is on the Dean's list or honor roll. It is based on the premise that good students are better drivers.

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. Gross Estate: All of the assets and liabilities owned at death.

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 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 toan 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.

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 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.