Search our reinsurance online glossary of terms or click a letter to view terms in that category...

GAAP
See GENERALLY ACCEPTED ACCOUNTING PRINCIPLES


GENERALLY ACCEPTED ACCOUNTING PRINCIPLES
A method of reporting the financial results of an insurer more in accordance with the going-concern basis used by other businesses. GAAP assigns income and disbursements to their proper period, as distinguished from the more conservative requirements of statutory accounting, by which insurers are regulated.


GLOBAL INSURANCE
Coverage applying to losses arising out of all classes of insurance policies (or almost all classes) and not to a worldwide territory as could be mistakenly interpreted.


GNEPI
See GROSS NET EARNED PREMIUM INCOME and SUBJECT PREMIUM.


GNWPI
See GROSS NET WRITTEN PREMIUM INCOME and SUBJECT PREMIUM.


GRADED SURPLUS TREATY
A surplus share treaty under which the capacity expressed as a number of lines varies according to class or the net retained line of the ceding insurer.


GROSS LINE
The amount of liability an insurer has written on a risk, including the amount it has reinsured. Net line plus reinsurance equals gross line.


GROSS LOSS
+ The amount of a ceding company's loss irrespective of any reinsurance recoveries due.


GROSS NET EARNED PREMIUM INCOME
The usual rating base for excess of loss reinsurance. It represents the earned premiums of the primary company for the lines of business covered net, meaning after cancellation, refunds, and premiums paid for any reinsurance protecting the cover being rated, but gross, meaning before deducting the premium for the cover being rated.


GROSS NET WRITTEN PREMIUM INCOME
Gross written premium less returned premiums and premiums paid for reinsurance which inures to the benefit of the cover in question. Its purpose is to create a base to which the reinsurance rate is applied. Same as GNEPI, except premiums are written instead of earned.


GROUND-UP LOSS
+ In insurance, the gross amount of loss occurring to an insured and subject to the insured's insurance policy, beginning with the first dollar of loss and prior to the application of a deductible or deduction, if any, required by the policy. In reinsurance, the term refers to the gross amount of loss occurring to the reinsured, beginning with the first dollar of loss and after the application of deductions required by the reinsurance agreement (that can be several in number): a) the reinsured's retention in excess of loss covers; b) other inuring reinsurances, such as quota share, surplus share, per risk excess, facultative, or common account coverage; or c) the uncollectibility of any reinsurances. For example, ground-up losses subject to a per risk excess treaty protecting the reinsured's net retention would equal the net loss beginning with the first dollar after reduction of the gross loss by recoveries from other treaties, such as surplus covers and facultative placements, but before the application


GUARANTY ENDORSEMENT
An addition to an insurance policy (between and insurance company and a policyholder covering the policyholder's mortgaged property) which requires that, in the event of the company's insolvency, the mortgagee and/or the policyholder be paid directly by the reinsurer either for any loss covered by reinsurance or (as is often provided) for the full insurance protection afforded by the insurance company. Since the full insurance protection afforded by the insurance company may be above the reinsurance which would be payable to the reinsured company, the reinsurer may be assuming an additional risk in such an endorsement. Similar to the cut-through endorsement, the guaranty endorsement is also known as a Mortgagee Endorsement.