E&O Errors and omissions.
EPL (or EPLI) See
Employment Practices Liability Insurance.
ERISA See Employee Retirement Income Security
Act.
earned premium The portion
of the premium that represents coverage already provided. For example,
if you paid $600 for a six-month automobile insurance policy one month
ago, the earned premium on the policy is $100 (or 1/6 of $600).
effective date
The date upon which the insurance policy goes into effect.
elimination period
The time interval (waiting period) between events specified in the policy.
Examples include the time between the occurrence of a disability and when
the first benefit is paid and the time between the issue date of a health
insurance policy and the date when certain coverages become effective.
embezzlement The fraudulent
use of money or property that has been entrusted to one's care.
Employee Retirement Income Security Act
(ERISA) Legislation applying to most private pension and welfare plans that
requires certain standards (for funding, participation, vesting, termination,
disclosure, fiduciary responsibility, and tax treatment) to protect participating
employees.
Employment Practices Liability
(EPL) Insurance A specialized form of insurance specifically designed
to protect against loss incurred in litigating and settling wrongful
employment practices-liability claims. This is also commonly called
"EPLI."
encumbrance Any outside interest in
property, such as a mortgagee or conditional sales contract.
endorsement A written provision
that adds to, deletes, or modifies the provisions in the original contract.
endowment A life insurance
contract which provides for the payment of the face amount at the end of a
fixed period, or at a specified age of the insured, or at the death of the
insured before the end of the stated period.
estoppel A legal doctrine that prevents
a person from denying the truth of a previous representation of fact,
especially when the representation has been relied on by the one to
whom the statement was made.
evidence of insurability
Any information concerning the proposed insured required to satisfy
underwriting standards, such as a medical examination or physician's
statement.
excess insurance Coverage
which becomes available to the insured only above a stipulated amount
of loss, or only after any other applicable insurance has been exhausted.
excess interest The difference
between the rate of interest the company guarantees to pay on proceeds
left under settlement options and the interest actually allowed on such
funds by the company.
exclusion Something not covered
by the policy and specifically so stated in the policy contract.
exclusions The section of
the policy contract that specifies the losses not protected by the policy.
expected mortality The
number of deaths which theoretically should occur among a group of insured
persons during a given period according to the mortality table in use.
expense constant
A flat amount sometimes imposed in workers' compensation insurance if the
estimated premium is less than the specified amount. Intended to pay the cost
of issuing and servicing a small policy.
expense ratio A measure
of a company's expenses that is determined by dividing the company's expenses
by its written premiums.
experience This refers to
the loss ratio status of a particular risk, or of a particular coverage, or
of a particular carrier, etc. over a specified period of time.
experience modification
A percentage increase or reduction in rates produced by application of the
experience rating plan.
expiration date The date
on which coverage ceases; exact dates and times vary by policy.
expiry The end of coverage under a term
life insurance policy at the end of its stated term period.
exposure unit A unit of measurement
used in insurance pricing; it varies by line of insurance.
extended coverage endorsement
An endorsement added to the standard fire policy giving protection against
windstorms and hail; explosions; riots; civil commotion; and damage
caused by aircrafts, vehicles and smoke.
extended reporting period
Also know as a "tail;" the period of time allowed for making claims
after a claims-made liability policy expires.
extended term insurance
One of the nonforfeiture options contained in most whole life and endowment
policies; it provides that the policy owner may elect to have the cash
surrender value of the policy used to extend the coverage for whatever
term period the cash value will purchase.
extra expense coverage
This protects the policyholder against the extra expense that may be
involved in carrying on his/her business after the occurrence of a loss.
For example, if a newspaper plant was damaged by fire, the publishing
company might have to get their paper published by a rival plant until
their own could be restored. Thus, they could carry on their business,
but at extra expense to themselves.
