Most of the definitions below are provided courtesy of the Insurance Institute of Canada. Definitions provided by Insurance Bureau of Canada are indicated with an asterisk ("*").
The language of insurance can be quite complex and confusing. Below are some commonly used insurance terms and their meanings. Insurance professionals with whom you may come into contact should be prepared to explain these terms. If you don't understand, ask!
This information is for educational purposes only and should not be relied upon to form professional opinions on coverage issues.
- Garage Liability Insurance
- Protection for an automobile dealer, repairer, service station etc. The coverage is for their legal liability for claims for bodily injury and property damage due to business operation.
- Garaging location*
- The postal code where your vehicle is parked or garaged when not in use. This is usually your primary residence.
- See Graduated driver’s licensing.
- General Cover
- A policy which covers property at several locations.
- General Damages
- It is applied in a third party injury claim. Damages awarded by a Court of law for pain and suffering of an individual.
- General insurance*
- See Property & Casualty Insurance
- General Insurance Ombudservice (GIO)*
- Assists in the resolution of conflicts between insurance companies and their customers. When disputes arise, GIO's mediators and experienced customer service officers help insurance companies and customers work toward a solution that is in the best interest of both parties in a fair, independent and impartial environment. For more information about GIO and its services, please visit their website at www.giocanada.org
- See General Insurance Ombudservice.
- Good Faith
- Most ordinary contracts are good faith contracts. Insurance contracts are agreements made in the utmost good faith. This implies a standard of honesty greater than that usually required in most ordinary commercial contracts.
- Government-Run Auto Insurance*
- In Manitoba, Saskatchewan and BC, consumers have no choice but to buy their insurance from the provincial government. (Some optional coverages can be purchased from private insurance companies). In Quebec, insurance for injuries as a result of a car collision must be purchased from the government.
- Grace period*
- A period after the premium due date during which an overdue premium may be paid without penalty. The policy remains in force throughout this period.
- Graduated Driver’s Licensing*
- A staged introduction of new drivers into the driving environment. Under graduated driver’s licensing systems, new drivers earn more driving privileges as they gain more experience and demonstrate that they are able to handle increased risk.
- Gross Negligence
- The degree of negligence somewhat greater than ordinary negligence. It may be a reckless wanton and wilful misconduct causing bodily injury and/or property damage.
- Guaranteed replacement cost endorsement (building)*
- Coverage that pays for replacement without reduction for depreciation (see also Actual cash value and Depreciation). A guaranteed replacement cost endorsement covers any shortfall in the event that the replacement cost of a building has been underestimated.
- One who promises to answer for another. For example, an insurance company may guarantee a contractor in the performance of his contract. The insurance company is the guarantor or surety.
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