Glossary Of Insurance Terms Page 3
Garage Liability Insurance: Insurance coverage for the legal liability of automobile dealers, garages, repair shops and service stations for bodily injury and property damage arising out of their business operations Garagekeepers Coverage: Provides coverage to owners of storage garages, parking lots and body and repair shops for their liability of damage to automobiles left in their custody for safekeeping or repair General Aggregate Limit: The maximum amount of insurance payable during the policy period for losses (other than those arising from the products - completed operations hazards as covered under the standard commercial general liability policy) General Liability Insurance: Insurance protecting businesses from most liability exposures other than automobile and professional liability Glass Insurance: A property insurance policy covering breakage of building glass regardless of cause Governing Classification: In Workers' Compensation Insurance, the classification that best describes the workers' compensation exposure of an employer's business Grace Period: Period of time after the due date of a premium during which the policy remains in force without penalty. Graded Premium Policy: A type of whole life policy designed for people who want more life coverage than they can currently afford. They pay a lower premium rate that increases gradually over the first three to five years and then remains constant over the life of the policy. Gross Negligence: Willful and wanton misconduct Gross Vehicle Weight (GVW): The weight specified by a manufacturer for the maximum total loaded weight of a single vehicle Guaranteed Term: A form of renewable term insurance that remains in force as long as the premiums are paid on time. With guaranteed term insurance, the insurance company cannot terminate the policy during the term.
Hold Harmless Agreement: A contractual agreement that requires one contracting party to assume certain legal liabilities of the other party Host Liquor Liability: Liability coverage for hosts of business or social functions arising out of the serving or distribution of alcoholic beverages by a party not engaged in this activity as a business enterprise
Incontestable Clause: A clause in a policy providing that a policy has been in effect for a given length of time (two or three years), the insurer shall not be able to contest the statements contained in the application. In life policies, if an insured lied as to the condition of his health at the time the policy was taken out, that lie could not be used to contest payment under the policy if death occurred after the time limit stated in the incontestable clause. Incurred Losses: The amount of paid claims and loss reserves within a particular period of time, usually a policy year. Customarily computed as losses incurred during the period, plus outstanding losses at the end of the period, less outstanding losses at the beginning of the period Independent Adjuster: A claims adjuster who provides adjustment services to insurance companies but is not employed by them Independent Contractor: An individual or company who has agreed, in writing, with another party to perform a job or function on behalf of that party Inflation Guard Provision: A provision that increases the limit of insurance by a specified percentage over a specified period of time to offset inflation costs Insurability: The condition of the individual wishing to be insured, including their health, susceptibility to injury and life expectancy. Insurance:
A formal social device for reducing risk by transferring the risks
of several Insurance Policy: The printed form which serves as the contract between an insurer and an insured. Insurance to Value: Insurance written in an amount equal to the value of the property or which meets coinsurance requirements Insured: The party who is being insured. In life insurance, it is the person because of his or her death the insurance company would pay out a death benefit to a designated beneficiary. Insurer: The insurance company; Party that provides insurance coverage, typically through a contract of insurance. Irrevocable Beneficiary: A beneficiary that cannot be changed without that beneficiary's consent. Increasing Term Insurance: Term life insurance in which the death benefit increases periodically over the policy's term. Usually purchased as a cost of living rider to a whole life policy.
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