An automobile insurance option, available in some states,
that covers the difference between a car’s actual cash
value when it is stolen or wrecked and the amount the consumer
owes the leasing or finance company. Mainly used for leased
cars. (See Actual Cash Value.)
In ocean marine insurance, a concept which provides that,
where a portion of a vessel or cargo is jettisoned to save
the entire venture from peril at sea, the resulting loss is
shared by all parties involved. The owners of property that
is saved contribute in proportion to the interests suffering
loss, provided the latter are free of fault in the danger
and the venture ultimately is successful. (Distinct from Particular
In auto insurance, typically refers to awards for pain and
General Liability Insurance:
A broad term meaning liability insurance, other than automobile
liability or employers’ liability, written to cover
professional and commercial risks. In respect to commercial
liability, various available coverages could cover such risks
as premises and operations, contractual liability, products
and completed operations.
Generally Accepted Accounting Principles (GAAP):
Generally accepted accounting principles (GAAP) accounting
is used in financial statements that publicly-held companies
prepare for the Securities and Exchange Commission. (See
Generic Auto Parts:
Auto crash parts produced by firms that are not associated
with car manufacturers. Insurers consider these parts, when
certified, at least as good as those that come from the original
equipment manufacturer (OEM). They are often cheaper than
the identical part produced by the OEM. (See Crash
Aftermarket Parts; Competitive
Replacement Parts; Original
Equipment Manufacturer Parts–OEM.)
Coverage for glass breakage caused by all risks; fire and
war are sometimes excluded. Insurance can be bought for windows,
structural glass, leaded glass, and mirrors. Available with
or without a deductible.
Good Driver Plan:
An auto insurance rating program that reflects the insured’s
accident and traffic violation record as a factor in determining
The number of days (31 in most cases) a life insurance policy
will remain in force when a payment is overdue.
Graduated Drivers License:
Licenses for younger drivers that allow them to improve their
skills. Regulations vary by state, but often restrict night
time driving. Young drivers receive a learner’s permit,
followed by a provisional license, before they can receive
a standard drivers license.
Financial services legislation, passed by Congress in 1999,
that removed Depression-era prohibitions against the combination
of commercial banking and investment-banking activities.
allows insurance companies, banks, and securities firms to
engage in each others’ activities and own one another.
A single policy covering a group of individuals, usually employees
of the same company or members of the same association and
their dependents. Coverage occurs under a master policy issued
to the employer or association.
Period during which the level of interest specified under
a fixed annuity is guaranteed.
Guaranteed Cost Insurance:
The life insurance sold by some companies, with all cost
factors guaranteed at the time of issue. Policies of this
type usually have lower premiums than the pre-divided premiums
of comparable participating policies.
A fund, derived from assessment against solvent insurance
companies, to absorb losses of claimants against insolvent
A new legal concept that holds gun manufacturers liable
for the cost of injuries caused by guns. Several cities
lawsuits based on this concept.