A factor used to adjust a base figure to an ultimate one. For example (01) The ratio between the ultimate cost and the accumulated payments at a prior development period, as used in statistical claims projection methods, such as the chain ladder method. (02) The scaling-up of claims experience to allow for the expectation of the occasional very large claim. This is used in experience rating of individual claims experience that has been stripped of any very large claims. It is also sometimes used in motor rating to make adequate allowance for large bodily injury liability claims, stripped out of a basic analysis.
Insurance Encyclopedia
Ground coverage (Aviation Insurance)
Insurance for risks to the airplane body while not flying. Perils are specified as either “not in flight” or “not in motion.” “Not in flight” coverage also covers the aircraft during taxi.
Ground heave
See: HEAVE.
Ground risks
Aviation insurance term describing the risk of damage to the aircraft while stationary on the ground.
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The risk of damage to an aircraft while stationary on the ground.
Ground Up Loss
The total amount of loss sustained by the ceding company before taking into account the credit(s) due from reinsurance recoverable(s).
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The entire amount of an insurance loss, including deductibles, before application of any retention or reinsurance. The original loss to the insured, after recognizing known salvage and subrogation.
Ground-up Loss
In Reinsurance, the term refers to the gross amount of loss occurring to the reinsured, beginning with the first rupee of los and after the application of deductions required by the reinsurance agreement (which can be several in number) (a) the reinsured’s retention in excess of loss covers, (b) other inuring reinsurance says, such as quota share, surplus share, per risk excess, facultative, or common account coverage, or (c) the uncollectibility of any reinsurance. 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 rupee after reduction of the gross loss by recoveries from other treaties such as surplus covers and facultative placements, but before the application of the deductible in the per risk excess cover itself.
Grounding risk
Withdrawal of aircraft from service. The risk is insurable by an aircraft manufacturer under an aviation products liability policy to indemnify a manufacturer against his legal liability for loss of use pending investigation and repair of an alleged defect.
Group
In insurance, insureds and their dependents who work for an employer or belong to an association through which they become entitled to insurance coverage.
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Coverage of a number of individuals under one contract. The most common “group” is employees of the same employer.
Group (Health Insurance)
Many people covered under a contract together. Most often, a group is comprised of employees of a particular business.
Group annuity
Retirement plan that provides monthly (or quarterly, semiannual, or annual) income benefits at retirement to a group of individuals that are under a master contract usually issued to an employer. Each member of the annuity plan is given a verifying certificate.