A premium based on another factor besides loss experience, for example, a certain specified rating. The cost is guaranteed because it will never be adjusted on the basis of the insured’s loss experience during the policy’s term.
Insurance Encyclopedia
Guaranteed cost reinsurance
A form of reinsurance that has no adjustable features. The final premium rate for the coverage is exactly as set forth ab initio in the contract.
Guaranteed eligibility
Specific period (3 to 6 months) in which patients who are insured in prepaid health plans are eligible for Medicaid regardless of their actual eligibility for Medicaid. A state may apply to the Centers for Medicare and Medicaid Services (CMS) for a waiver to have this put into its contracts.
Guaranteed for Freight
Freight payable whether the goods are delivered or not, provided the failure to deliver the goods resulted from causes beyond the carrier’s control.
Guaranteed income contract
See: guaranteed investment contract (GIC) .
Guaranteed insurability
A life insurance term describing the insurer’s offer to provide new policies without further evidence of health. The offer is usually confined to existing policyholders.
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An option that permits the policy holder to buy additional stated amounts of life insurance at stated times in the future without evidence of insurability.
guaranteed insurability (GI) rider
Life insurance policy amendment that allows the policyholder to buy additional insurance of the same type as that provided in the original policy. The amount is specified in the policy and may be purchased at specific premium rates and at certain times without new evidence of insurability. Also called policy purchase rider .
Guaranteed insurability (Health Insurance/Life Insurance)
A contract option stating that the insured may purchase extra insurance in specified increments at specified times without having to prove insurability again.
Guaranteed insurability option
See: future increase option .
Guaranteed interest contract
See: guaranteed investment contract (GIC) .