Glossary

Insurance Terms Glossary

This page provides a glossary of insurance terms and definitions that are commonly used in the insurance business. New terms will be added to the glossary over time.

The definitions in this glossary are developed by the NAIC Research and Actuarial Department staff based on various insurance references. These definitions represent a common or general use of the term. Some words and/or phrases may be defined differently by other entities, or used in a context such that the definition shown may not be applicable.

Terms beginning with G

General Account: – assets of an insurance company that are not held in a separate account. The company has sole discretion over the investment of general account assets.
General Agent: – an independent insurance businessperson under contract to place insurance with an insurer and supervise field and special agents who work for the general agency.
General Liability: – insurance for miscellaneous forms of liability not included in other coverage. Liability not directly related to the insured's business operation.
Grace Period: – a period beyond the premium due date during which the insurance premium may be paid without penalty.
Gross Line: – larger of net line or treaty capacity, the maximum gross retention a company will accept on a given class of risk.
Gross Premium: – premium amounts including expense margins.
Group Insurance: – coverage provided to a homogenous group of persons under a master policy issued to their employer or an entity being formed for purposes other than achieving group rates.
Group Life: – term or permanent life insurance purchased by employers for employees.
Guaranteed Issue: – issue of coverage without underwriting restrictions.
Guaranteed Renewable: – contract that must be renewed at the insured's option by the terms of the contract for a specified period (at premium rates guaranteed in the policy).
Guaranty Association: – created by state law to pay some covered claims if an insurer becomes insolvent, funded by assessments on insurers doing business in the state.

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