Glossary

GLOSSARY - LETTER G


Graded Commission

A compensation scale for agents which provides for varying commission rates depending upon the class, type, or volume of insurance written. Contract with Flat Commission.


Gross Line

The total limit accepted by an insurer on an individual risk, including the amount to be reinsured.


Gross Premium

The net premium plus operating expenses, commissions and other expenses.


Guaranty Funds

Funds created by state law from contributions by insurance companies operating in the state which are used to make good any unpaid claims or otherwise to make money available to insolvent companies. Each state which has a fund has a different plan.


Guiding Principles

Rules established by major Property and Liability trade associations for the adjustment of losses, particularly with respect to how losses should be apportioned between insurance companies under certain circumstances.