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Earned Premium
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The portion of the policy premium allocable to the expired portion of the policy term.
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Earth Movement Exclusion
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A provision to exclude coverage for loss caused by settlement of earth, creep or slide of soil, or other instability of the earth.
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Earthquake
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Vibrations of the earth's crust caused by pressures from within the earth.
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Effective Date
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The day upon which a policy first becomes elegible to pay covered losses.
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Effects
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Personal property, goods, chattels, clothes, and documents.
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Egilibility Period
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Once an employee has become elegible for company benefits such as life and health insurance, the employee is usually given a limited period of time to decide which benefits to subscribe to without having to go through physical examinations and prove insurability. This is called the eligibility period. Once the eligibility period has expired, should the employee decide to purchase or subscribe to the insurance benefit programs, proof of insurability is normally required and the insurer may reject the employee's request.
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Elimination Period
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In health insurance, an amount of time after the occurrence of a disability during which no indemnities are payable, as provided in the policy. An elimination period can apply to accident, sickness, or to both. Commonly referred to as the waiting period. Also used in boiler and machinery business interruption insurance.
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Embezzlement
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Fraud in using money for yourself that has been entrusted by another. A similar term, conversion, applies to property instead of money.
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Endorsement
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A document with language attached to and becoming part of a basic policy for the purpose of amplifying or modifying it, either at its inception or during its term. Any such modification can become effective only with the agreement of the insured, unless clearly made soley for the benefit of the insured.
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ERISA-Employee Retirement Income Security Act of 1974
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Sometimes called the "pension reform act." One of the pruposes of this act is to force employers to protect the assets of the business that have been designated as employee pension benefits.
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Errors & Omissions Clause
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Obligatory reinsurance treaties contain a provision to clarify that because of the nature of the treaty, should an error or omission occur in the process of recording or describing of the ceded risk, if the risk is otherwise covered by the treaty, the reinsurer will still respond despite the error or omission.
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Estoppel
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The prevention of one party from asserting rights which might otherwise have existed, by reason of that party's inequitable conduct. Waiver is a term sometimes used interchangeably.
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Evidence of Insurability
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In life and health policies, a statement on the application that provides proof of an individual's occupation and/or physical condition. Used to help determine that individual's acceptability for insurance.
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Excess Insurance
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An amount of protection which bears all or a portion of a loss after the loss exceeds an agreed amount. This amount may or may not be insured elsewhere by the company issuing the policy. Excess policies are not subject to the basic principle of contribution with non-excess policies, although they may contribute or share the loss with other excess policies.
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Excess Line
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A line of insurance provided by insurers not licensed in the states where the risks are located and placed under the surplus lines laws of the various states. Before such placements can be made through specially licensed surplus lines agents and brokers, state laws generally require evidence that placements could not readily be made in licensed insurers--or broadly referred to as being all lines of insurance placed with nonadmitted insurers.
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Exclusion
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1) That which is not covered by the insurance as stated in the policy.
2) A clause in an insurance policy which specifies that which is excluded from the policy's coverage.
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Expense Constant
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A flat premium charge made on small workers compensation policies based upon the fact that the expense factor on such risks is inadequate to cover the cost of issuing and handling the policy.
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Expense Ratio
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Expenses incurred, expressed as a percentage or net written premiums.
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Experience Rating
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A form of individual risk rating which takes into consideration the loss experience of the particular risk as a credit or a debit to the manual rate for the insured's classification. As the size and number of exposure units increase (e.g., a multiple location risk), more credibility is given to the insured's own experience.
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Expiration
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1)The cessation of insurance when the time period for which it was written has ended.
2)The date on which insurance expires.
3)The detailed policy records of customers served which are owned by independent insurance agents.
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Expiration Notice
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A notice sent (by an insurer to an agent or broker, by an agent to a client, or by an insurer to a policyholder) to the effect that a policy is about to expire on a given date.
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Explosion
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1)A bursting of forces, usually from pressure from within.
2)In general, a rupture of a pressure vessel of some kind due to too much internal pressure, accompanied by a loud noise. Courts, however, have interpreted it in many ways.
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Exposure
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1)Synonymous with risk:chance of loss-by fire, radiation, accident, etc.
2)The danger of loss (particularly by fire) arising from what happens to another risk close by.
3)The sum total of values which, if damaged or destroyed, would cause loss under a policy, i.e., the value of everything a policy insures.
4)A measure of the rating units or premium basis of a risk, e.g., payroll or number of automobiles.
5)A unit of loss potential (e.g., a life, a house, an automobile, a ship, a package in shipment, an acre of growing crops, a plate glass window, a fur coat), in which case the term "exposure unit" is used.
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Extended Reporting Period (ERP)
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In "claims-made" liability policies, only those claims that occur after the retroactive date and are reported or filed against the insured during the policy period are covered by the policy. The ERP, or tail, is an endorsement available to extend the reporting period for the filing of a claim to give additional time in order to be considered covered.
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Services