An aggravated form of cashcentralpaydayloans.com/payday-loans-ca negligence characterized by the intentional failure to act as a prudent and reasonable person under similar circumstances with reckless disregard for an act’s consequences
Frequency. The number of losses occurring within a given time period. Thus, an insurer is said to have a “frequency problem” if its operating results are adversely affected by a large number of relatively small losses. This contrasts with a “severity problem.”
“Fresh Start. “A special provision of the Tax Reform Act of 1986 allowing for a phase-in of discounting of loss reserves.
Fronting. The issuance of insurance policies by an insurer as an accommodation to another insurer. Usually, the insurer providing the fronting facility cedes all or substantially all the risk, as well as a significant percentage of the premium, to the insurer being accommodated. This device often is used to enable an insurer to underwrite risks in a jurisdiction in which it is not licensed.
The primary noninsurance competition for GICs is the Bank Investment Contract (BIC), which is particularly popular for maturities of less than three years
Full-Risk Capitation. A form of managed Medicaid initiative, under which states pay HMOs (or occasionally health insuring organizations, essentially at-risk intermediaries not integrated with its contracted providers) on a capitated basis to provide a comprehensive set of Medicaid services.
Gatekeeper. A term sometimes used to refer to the primary care physician in a managed care environment, because of the responsibility to oversee and coordinate the patient’s overall care and the fact that the gatekeeper must authorize all referrals to specialists or other services. Without this referral, coverage may be denied by the health plan.
General Agency System. A marketing system particularly used in the field of life insurance, in which an agent has responsibility for a given geographic area.
General Damages. Compensation paid to a claimant for losses that cannot be specifically identified, such as those for pain and suffering.
Generally Accepting Accounting Principles (GAAP). Standards of accounting established by the American Institute of Certified Public Accountants or the Financial Accounting Standards Board and in other recognized accounting literature.
Grace Period. The period of time given for the payment of an overdue premium without causing a policy to lapse. The policy remains in force during this interval.
Group Annuity. A form of pension plan provided on a group basis, usually for employees within a business organization, under which annuities are provided upon retirement.
Group Deferred Annuity. A contract for retirement benefits in which an entire group of employees is underwritten, as opposed to a single annuity for each employee.
Group Deposit Administration Annuity. A pension plan funding instrument in which contributions paid by an employer accumulate at interest and, upon retirement, an immediate annuity is purchased for the employee.
Group Life Insurance. Life insurance provided on a group basis, usually for employees within a business organization, through a single master policy.
Group Model HMO. An HMO that contracts with a multispecialty medical group to provide care for HMO members; members are required to receive medical care from a physician within the group unless a referral is made outside the network.
Guaranteed Investment Contract (GIC). An agreement under which an investor, usually a pension fund, places assets with an insurance company, which guarantees the return of principal plus payment of interest at a stipulated rate. While many variables can enter into the agreement, such as the amounts to be deposited and the duration of the contract, all GICs require that the principal be repaid along with the guaranteed interest credited on the deposits. GICs come in many forms. The simplest GICs are “bullet” contracts under which the funds are returned in a lump sum. Other contracts allow for payouts over time. GICs also may differ according to deposit methods (lump sum or “window” periods) and maturity (ranging from one to ten years). Additionally, in recent years, companies have offered indexed or floating rate GICs in addition to the fixed-rate instruments.