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Kelley Blue Book

- E -     Insurance Glossary

Please choose the letter you wish to define:

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M     Z

• Earned Income:
  An employment income earned while working at some occupation.

• Earned Premium:
  An amount of "used up" policy premium during the term of an insurance policy.

• Economic Loss:
  An estimated total cost, insured and uninsured, of mishaps (such as: vehicle accidents, work accidents, and fires); including such factors as property damage, funeral expenses, wage loss, insurance administration costs, and medical, hospital and legal costs.

• Effective Date:
  The date on which the insurance under a policy will begin.

• Eligibility Date:
  The date which an individual is eligible for benefits.

• Eligibility Period:
  A specified period of time during which an individual member of a particular group may enroll without evidence of insurability.

• Eligibility Requirements:
  This term could be defined as either: (1) conditions which an employee must satisfy to participate in a retirement plan, or (2) conditions which an employee must satisfy to obtain a retirement benefit.

• Eligible Dependent:
  A dependent of an insured that is eligible for benefits.

• Eligible Employee:
  A member of a group who has met the eligibility requirements under a group life or health insurance plan.

• Elimination Period:
  Two definitions: A period of time between the period of disability and the start of disability income insurance benefits, during which no benefits are payable.

• Employee Dishonesty Coverage Form:
  A commercial crime insurance form that covers the loss of money, securities, and other covered property because of a dishonest act of a covered employee.

• Endorsements:
  An additional piece of paper, not a part of the original insurance policy, in which certain terms and conditions, when attached to the original insurance policy, becomes a legal part of that contract.

• Endorsement:
  An amendment of an insurance policy that alters the provisions of the contract.

• Enrollment Card:
  A document signed by an employee as notice of their participation in the benefits of a group health insurance plan.

• Entire Contract Clause:
  A provision in insurance policy stating that the life insurance policy and attached application constitute the entire contract between the parties.

• Entity Purchase Agreement:
  Specifies the terms and conditions which the business will buy back a deceased's share of the business's ownership.

• Errors and Omissions Insurance:
  A liability insurance policy that provides protection against loss incurred by a client because of some negligent act, error, oversight, or omission by the insured.

• Estate:
  The assets and liabilities of a person left at death.

• Estate Planning:
  Developing a plan to transfer all of your property from one generation to the next or within a generation .

• Estoppel:
  Legal doctrine that prevents a person from denying the truth of a previous representation of fact, especially when such representation has been relied on by the one to whom the statement was made.

• Errors and Omissions Insurance:
  A form of insurance that indemnifies the insured for any loss sustained because of an error or oversight on his or her part.

• 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, e.g., damage to a musician's hands or the multiple perils of a convention, for which coverage is unavailable in the normal market. (See also "Umbrella Liability" and "Surplus Lines.")

• Exclusions:
  The 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 Ratio:
  Portion of an annuity payment that is not subject to income tax when received.

• Expense Ratio:
  The ratio of a operating expenses to premiums.

• 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:
  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 some group policies for the return of premium to the policyholder because of lower than anticipated claims.

• Extended Nonowned Coverage:
  Endorsement that can be added to an automobile insurance policy that covers the insured while driving any nonowned automobile on a regular basis.

• Extended Reporting Period:
  An additional period of time after policy expiration during which valid reported claims will be paid under a claims-made policy of liability insurance

• Extended Term Insurance:
  A form of insurance available as a nonforfeiture option. This provides the original amount of insurance for a limited period of time, normally 5, 10, 15, or 20 years.

• Extra Expense Insurance:
  Type of business income insurance that provides reimbursement to an insured for the extra expense incurred to continue a business operation when property had been damaged or destroyed by a covered peril.

 

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