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GAP INSURANCE |
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.
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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.
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GENERIC AUTO PARTS |
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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.
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GLASS INSURANCE |
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.
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GRADUATED DRIVER LICENSES |
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.
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GRAMM-LEACH-BLILEY ACT |
Financial services
legislation, passed by Congress in 1999, that
removed Depression-era prohibitions against the
combination of commercial banking and
investment-banking activities. It allows insurance
companies, banks, and securities firms to engage
in each others’ activities and own one another.
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GROUP INSURANCE |
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.
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GUARANTEE PERIOD |
Period during which the
level of interest specified under a fixed annuity
is guaranteed.
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GUARANTEED DEATH BENEFIT |
Basic death benefits
guaranteed under variable annuity contracts.
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GUARANTEED INCOME
CONTRACT / GIC |
Often an option in an
employer-sponsored retirement savings plan.
Contract between an insurance company and the plan
that guarantees a stated rate of return on
invested capital over the life of the contract.
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GUARANTEED LIVING BENEFIT |
A guarantee in a variable
annuity that a certain level of annuity payment
will be maintained. Serves as a protection against
investment risks. Several types exists.
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GUARANTEED REPLACEMENT
COST COVERAGE |
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Homeowners policy that pays
the full cost of replacing or repairing a damaged
or destroyed home, even if it is above the policy
limit.
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GUARANTY FUND |
The mechanism by which
solvent insurers ensure that some of the
policyholder and third party claims against
insurance companies that fail are paid. Such funds
are required in all 50 states, the District of
Columbia and Puerto Rico, but the type and amount
of claim covered by the fund varies from state to
state. Some states pay policyholders’ unearned
premiums – the portion of the premium for which no
coverage was provided because the company was
insolvent. Some have deductibles. Most states have
no limits on workers compensation payments.
Guaranty funds are supported by assessments on
insurers doing business in the state.
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GUN LIABILITY |
A new legal concept that
holds gun manufacturers liable for the cost of
injuries caused by guns. Several cities have filed
lawsuits based on this concept.
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