GCPA Glossary

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Open-end mutual fund
A mutual fund that does not have a fixed number of shares and will offer as many shares as investors are willing to buy. Refer to the fund's prospectus for complete information on risks, fees and expenses.

Own occupation
A term defining the most liberal interpretation of total disability where only one test is applied to determine the insured's eligibility for total disability benefits: the ability to perform the duties of one's own occupation.

Partial disability
Built into some disability policies, available as a rider with others, this provision pays a portion of the total disability benefit to insureds unable to perform one or more of their occupational duties because of disability.

Recurrent disability
Term used to describe situations where a disability occurs, the insured recovers for a short period of time, then experiences a recurrence of the same or a related disability. Insureds with recurrent disabilities do not have to wait until their elimination period is over before they receive benefits.

Repos
A contract in which the seller of debt securities, usually Treasury bills, agrees to buy them back at a specified time and price. Also known as a repurchase agreement or buy back.

Residual disability benefit
Built into some policies, available as an option with others, this benefit pays the insured a portion of the total disability benefit after a return to work based on the percentage of income lost due to the disability.

Risk
Uncertainty regarding the expected rate of return and/or principal value or loss of an investment.

Risk tolerance
The ability of an investor to tolerate the risk of losing money for the potential to make money.

Russell 2000 Index
The Russell 2000(R) Index measures the performance of the 2,000 smallest companies in the Russell 3000(R) Index, which represents approximately 8 percent of the total market capitalization of the Russell 3000(R) Index. As of the latest reconstitution, the average market capitalization was approximately $580 million.

S&P 500 Index
The S&P 500 Index is considered the most accurate reflection of the U.S. stock market today. It is the benchmark against which judging the overall performance of money management is used. It is a large capitalization market-weighted index where each company's stock value affects the index in direct proportion of the company's market value relative to the total market value of the index. An index is unmanaged and you cannot invest directly in an index.

S&P BARRA Growth
The S&P BARRA Value is a capitalization-weighted index comprised of stocks of the S&P 500 with high book-to-price ratios relative to the S&P 500 as a whole. Each company of the S&P 500 is assigned to either the Value or Growth index so that the sum of the two indices reflects the total S&P 500.

S&P BARRA Value
The S&P BARRA Value is a capitalization-weighted index comprised of stocks of the S&P 500 with high book-to-price ratios relative to the S&P 500 as a whole. Each company of the S&P 500 is assigned to either the Value or Growth index so that the sum of the two indices reflects the total S&P 500.

S&P Midcap 400 Index
The S&P Midcap 400 Index is a widely recognized, unmanaged index of 400 medium capitalization stocks.

SAI
Statement of Additional Information, which can be requested in addition to the prospectus.

SEC required performance
There may be two sets of performance numbers shown for a registered insurance product (such as a variable annuity or mutual funds). The first set, which is obligatory, called "SEC required performance numbers," include deduction of the surrender charges along with all of the usual charges that apply if one withdraws funds early (within one, five or 10 years of the last calendar quarter, or since inception). The SEC required performance also is called "standardized performance". The second set of performance figures, which is optional but must be used in conjunction with the SEC required performance numbers, does not include surrender charges but does include the other charges and fees that must apply to the contract.

Sector funds
A type of mutual fund that invests in the stocks of companies representing a specific industry, such as technology, utilities or health care. Funds that concentrate investments in one industry may carry greater risk than more broadly diversified funds. Refer to the fund's prospectus for complete information on risks, fees and expenses.

Securities
Stocks, bond or other types of investments that represent equity ownership or a debt obligation. The holdings of a mutual fund are securities.

Securities and Exchange Commission (SEC)
The Securities and Exchange Commission a commission created by Congress to regulate the securities markets and to protect investors. The SEC does not guarantee an investor against the loss of money from an investment.

Shareholder
What an investor who holds mutual fund or stock shares is called.

Short term
Usually one year or less, often used to refer to bonds or loans.

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