Early Warning System A system of measuring insurers
Earned Premium The part of the total property/casualty policy premium earned by the insurance company which applies to the expired portion of the policy period.
Earthquake Insurance Covers a building and its contents, but includes a large percentage deductible on each. A special policy or endorsement exists because earthquakes are not covered by standard homeowners or most business policies.
Economic Loss Total financial loss resulting from the death or disability of a wage earner, or from the destruction of property. Includes the loss of earnings, medical expenses, funeral expenses, the cost of restoring or replacing property, and legal expenses. It does not include non economic losses, such as pain caused by an injury.
Electronic Commerce (E-Commerce) The sale of products such as insurance over the Internet.
Elimination Period A kind of deductible or waiting period usually found in disability policies. It is counted in days from the beginning of the illness or injury.
Employee Dishonesty Coverage Covers direct losses and damage to businesses resulting from the dishonest acts of employees. (See Fidelity Bond.)
Employers Provides protection for the employer for those injuries arising out of and in the course of employment which were not covered under the workers
Endorsement An additional piece of paper, not a part of the original contract, which cites certain terms and which becomes a legal part of that insurance contract. Additions to life insurance contracts are accomplished through the use of riders, which are similar to endorsements.
Environmental Impairment Insurance A form of insurance designed to cover losses and liabilities arising from damages to property by pollution.
Equipment Breakdown Insurance See Boiler and Machinery Insurance.
Equity In investments, the ownership interest of shareholders. In a corporation, stocks as opposed to bonds.
Errors and Omissions Insurance (E&O) A type of professional liability insurance which indemnifies insured professionals
Escrow Account Funds that a lender collects to pay monthly premiums in mortgage and homeowners insurance, and sometimes to pay property taxes.
Examples include discrimination, wrongful discharge, contract disputes and patent disputes. Level
Excess and Surplus Lines Property/casualty coverage that isn
Excess Limits Coverage against losses in excess of a specified dollar limit.
Excess of Loss Reinsurance A contract between an insurer and a reinsurer, whereby the insurer agrees to pay a specified portion of a claim and the reinsurer to pay all or a part of the claim above that amount.
Exclusion A provision in an insurance policy that eliminates coverage for certain risks, people, property classes, or locations.
Exclusive Agent A captive agent, or a person who represents only one insurance company and is restricted by agreement from submitting business to any other company unless it is first rejected by the agent
Exclusive Remedy Part of the social contract that forms the basis for workers compensation statutes under which employers are responsible for work-related injury and disease, regardless of whether is was the employee
Expense Ratio The ratio of a company
Experience The loss record of an insured or of a particular class of coverage.
Expiration Date The date shown on the declarations page of the policy when coverage will stop. It may be a specific date or a statement that coverage is continuous until cancelled.
Exposure This term in the insurance field may have several meanings (1) possibility of loss; (2) a loss potential as measured by type of construction, area or values; (3) a possibility of a loss being communicated to an insurance risk from its surroundings; or (4) a unit of measure of the amount of risk a company assumes (for example, one car insured for one year).
Extended Coverage An endorsement added to an insurance policy, or clause within a policy, that provides additional coverage for risks other than those in a basic policy.
Extended Coverage Property Insurance An extension of the fire insurance policy to protect the insured against property damage caused by the additional perils of windstorm, hail, explosion, or riot, civil commotion, aircraft, vehicle and smoke.
Extended Replacement Cost Coverage Pays a certain amount above the policy limit to replace a damaged home, generally 120% or 125%. Similar to a guaranteed replacement cost policy, which has no percentage limits. Most homeowner policy limits track inflation in building costs. Guaranteed and extended replacement cost policies are designed to protect the policyholder after a major disaster when the high demand for building contractors and materials can push up the normal cost of reconstruction. (See Replacement Cost Coverage.)
