Insurance Definitions

E Return To Alpha Index     "Exclusions">Exclusions: Specific conditions or circumstances listed in the policy for which the policy will not provide benefit payments. Exclusive Agent: An agent who is employed by one and only one insurance company and who solicits business exclusively for that company. Exclusion or Exception: Specified conditions or circumstances, listed in the policy, for which the policy will not provide benefits. Expense Ratio: The ratio of a company's operating expenses to premiums. Experience: A term used to describe the relationship, usually expressed as a percent or ratio, of premium to claims for a plan, coverage, or benefits for a stated time period. Experience Modification Factor: Used in workers compensation rating to reflect the degree to which a particular employer has experience that is better or worse that expected for that industry. Experience Rating: The process of determining the premium rate for a group risk, wholly or partially on the basis of that group's experience. Experience Refund: A provision in most group policies for the return of premium to the policyholder because of lower than anticipated claims. Exposure Unit: Unit of measurement used in insurance pricing. Extended Coverage Insurance: EC Protection for the insured against property damage caused by windstorm, hail, smoke, explosion, riot, attending a strike, civil commotion, vehicle and aircraft. This is provided in conjunction with the fire insurance policy and the various "package" policies. Extended Reporting Period: An additional period of time after policy expiration during which valid claims will be paid under a claims-made policy of liability insurance Extended Reporting Period Endorsement: Added to a claims-made policy of liability insurance to provide additional period of time during which valid claims will be paid Extended Term Insurance: A form of insurance available as a nonforfeiture option. It provides the original amount of insurance for a limited period of time. Extortion: Surrender of property away from the premises as a result of a threat to do bodily harm to the named insured, relative, or invitee who is being held captive. Extra Expense Insurance: Type of business income insurance that covers the extra      expenses incurred to continue operations after a loss has occurred. Early Retirement: Retirement of a participant prior to the normal retirement date, usually     with a reduced amount of annuity. Early retirement is generally allowed at any time during a     period of 5 to 10 years preceding the normal retirement date. Earned Income: Employment income derived from salary, wages, commissions, or fees. Economic Loss: The estimated total cost, both insured and uninsured, of mishaps (such as motor vehicle accidents, work accidents, and . Elimination Period: A specified number of days at the beginning of each period of disability during which no disability income benefits are paid. The elimination period may be as short as a few days or as long as one year or more. Embezzlement: Fraudulent use or taking of another's property or money which has been entrusted to one's care. Eecurty Act (ERISA)">Employee Retirement Income Security Act (ERISA): Legislation passed in 1974 applying to most private pension and welfare plans that requires certain minimum standards to protect participating employees. : A document signed by an employee as notice of his/her desire to participate in the benefits of a group insurance plan. ERISA: See Employee Retirement Income Security Act. Evidence of Insurability: Any statement of proof of a person's physical condition and/or other factual information affecting his/her acceptance for insurance. Excess and Surplus Insurance: (1) Insurance to cover losses above a certain amount, with losses below that amount usually covered by a regular policy. (2) Insurance to cover an unusual or one-time risk. Exclusion or Exception: Specified conditions or circumstances, listed in the policy, for which the policy will not provide benefits. Expense Ratio: The ratio of a company's operating expenses to premiums. Experience: A term used to describe the relation rating to reflect the degree to which a particular employer has experience that is better or worse that expected for that industry. Experience Rating: The process of determining the premium rate for a group risk, wholly or partially on the basis of that group's experience. Experience Refund: A provision in most group policies for the return of premium to the policyholder because of lower than anticipated claims. Exposure Unit: Unit of measurement used in insurance pricing. Extended Coverage Insurance: EC Protection for the insured against property damage caused by windstorm, hail, smoke, explosion, riot, attending a strike, civil commotion, vehicle and aircraft. This is provided in conjunction with the fire insurance policy and the various "package" policies. Extended Reporting Period: An additional period of time after policy expiration during which valid claims will be paid under a claims-made policy of liability insurance Extended Reporting Period Endorsement: Added to a claims-made policy of liability insurance to provide additional period of time during which valid claims will be paid Extended Term Insurance: A form of insurance available as a nonforfeiture option. It provides the original amount of insurance for a limited period of time. Extortion: Surrender of property away from the premises as a result of a threat to do bodily harm to the named insured, relative, or invitee who is being held captive. Extra Expense Insurance: Type of business income insurance that covers the extra expenses incurred to continue operations after a loss has occurred.

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