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.

Generation Skipping Tax
A transfer tax imposed on a gift or inheritance to those at least two generations younger than the person making the transfer.

Gift
A voluntary transfer of property to another person, made without receiving consideration in return.

Grace Period
A period of time after a premium due date, usually 30 or 31 days, during which an insurance policy remains in force and the overdue premium may be paid without penalty.

Gross Premium
The full amount of premium, ignoring taxes or deductions.

Graded Commission Scale
A commission scale providing for payment of a high first-year commission and lower renewal commissions.

Gross estate
All of the assets and liabilities owned at death.

Gross Negligence
The failure to perform a manifest duty in reckless disregard of the consequences as affecting the life or property of another.

Guaranteed Insurability
An option that permits the policy holder to buy additional stated amounts of life insurance at stated times in the future without evidence of insurability.

Gross Rate
The sum of the pure premium and a loading element.

Guaranteed Investment Contract
An investment contract with an insurer in which the insurer guarantees both principal and interest on a pension contribution.

Guaranteed Premiums
The guaranteed maximum payment for the purchased policy.

Guaranteed Purchase Option
Benefit that can be added to a life insurance policy permitting the insured to purchase additional amounts of life insurance at specified times in the future without requiring evidence of insurability.

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 policy holders.

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.