Earned Premium: Elimination Period: Employers Liability Insurance: Encumbrance: Endowment: Equity in investments: Evidence of insurability:

Exclusions: Expense Ratio: Exposure: Extended Replacement Cost: Extended term insurance: Extra risk:

 

Earned Premium:

The portion of premium that applies to the expired part of the policy period. Insurance premiums are payable in advance but the insurance company does not fully earn them until the policy period expires. A three-year policy that has been paid in advance and is one year old would have only partly earned the premium.

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Elimination Period:

The time which must pass after filing a claim before policyholder can collect insurance benefits. Also known as "waiting period."

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Employers Liability Insurance:

Coverage against common law liability of an employer for accidents to employees, as distinguished from liability imposed by a workers' compensation law.

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Encumbrance:

A claim on property, such as a mortgage, a lien for work and materials, or a right of dower. The interest of the property owner is reduced by the amount of the encumbrance.

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Endowment:

Life insurance payable to the policyholder on the policy's maturity date, or to a beneficiary if the insured dies prior to that date.

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Equity in investments:

The ownership interest of shareholders. In a corporation, stocks as opposed to bonds.

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Evidence of insurability:

The common requirement by life insurance companies that potential policyholders undergo a physical examination or medical tests, such as blood pressure or cholesterol screening, before the applicant can purchase an individual life insurance policy.

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Exclusions:

Items or conditions that are not covered by the general insurance contract.

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Expense Ratio:

The ratio of underwriting expenses (including commissions) to net premiums written. This ratio measures the company's operational efficiency in underwriting its book of business.

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Exposure:

Measure of vulnerability to loss, usually expressed in dollars or units.

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Extended Replacement Cost:

This option extends replacement cost loss settlement to personal property and to outdoor antennas, carpeting, domestic appliances, cloth awnings, and outdoor equipment, subject to limitations on certain kinds of personal property; includes inflation protection coverage.

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Extended term insurance:

A form of insurance available as a non-forfeiture option providing the original amount of insurance for a limited time.

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Extra risk:

A person possessing a greater-than-average likelihood of loss.

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