See: generally accepted accounting principles (GAAP) .
Insurance Encyclopedia
GAAP accounting
Generally Accepted Accounting Principles as promulgated by the Financial Accounting Standards Board (FASB). See Statutory accounting principles.
GAAP accounting (Generally Accepted Accounting Principles)
These principles, as practised in the UK under the Companies Act, require company accounts to give a true and fair view. There are moves towards a globally accepted GAAP for insurance accounting. GAAP is associated with annual accounting, which by 2005 will supersede the three-year accounting system at Lloyd’s to bring them into line with insurance company accounting. See ANNUAL VENTURE.
GAAP reserves
Insurance reserves that are calculated using generally accepted accounting principles. Also see generally accepted accounting principles (GAAP) .
GAD
Government Actuary’s Department. Note the functions of GAD examining periodical returns previously performed for the DTI are now performed by actuaries within the FSA.
Gag clause
Provision in a managed care contract that either limits the amount of information that a health care provider may share with a patient or limits the situations in which a provider may recommend a certain alternative treatment when the plan does not cover it. This may be experimental treatments or treatment that may be expensive even if this might be the best course of action for the patient.
Gain from operations
Amount of income that is in excess after benefit and administrative expenses have been accounted for.
Gain-or-loss report
Financial statement for insurance that shows underwriting and investment gains and losses for either an individual case, group of cases, or an entire category of group business.
Gale
A wind with a speed of from 34 to 40 knots (39 to 46 miles per hour; 63 to 74 kilometres per hour), according to the Beaufort scale. Also called fresh gale . On the water a storm at sea. Moderately high (18-25 ft) waves of greater length, edges of crests begin to break into spindrift, foam blown in streaks. On the land Twigs breaking off trees, generally impedes progress. Also refer “Strong Gale.”
Gambling
The creation of a situation where there is a chance of either loss or gain. This is the opposite of insurance, which either eliminates or reduces the risk of loss and presents no chance or gain.