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Insurance Definitions and Insurance Terms Letter E

Insurance Terms By Alphabet

Insurance Glossary and Insurance Terms Definitions are below.

Choose the letter of the alphabet that your Insurance question or term falls under. You may browse the
definitions to obtain an understanding of the product you have. These definitions are not limited to just car
Insurance. Thank you for visiting our site.

EARLY WARNING SYSTEM
A system of measuring insurers’ financial stability set up by Insurance industry regulators. An example is the
Insurance Regulatory Information System (IRIS), which uses financial ratios to identify insurers In need of
regulatory attention.

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.

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.

Coverages and benefits listed above may be available At an additional charge, talk to us today to find out
more.

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 noneconomic 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.

EMPLOYEE RETIREMENT INCOME SECURITY ACT / ERISA
Federal legislation that protects employees by establishing minimum standards for private pension and
welfare plans.

EMPLOYER’S LIABILITY
Part B of the workers compensation policy that provides Coverage for lawsuits filed by injured employees
who, under certain circumstances, can sue under common law.

EMPLOYMENT PRACTICES LIABILITY Coverage
Liability Insurance for employers that covers wrongful termination, discrimination, or sexual harassment
toward the insured’s employees or former employees.

ENDORSEMENT
A written form attached to an Insurance policy that alters the policy’s Coverage, terms, or conditions.
Sometimes called a rider.

ENVIRONMENTAL IMPAIRMENT LIABILITY Coverage
A form of Insurance designed to cover losses and liabilities arising from damage to property caused by
pollution.

EQUITY
In investments, the ownership interest of shareholders. In a corporation, stocks as opposed to bonds

EQUITY INDEXED ANNUITY
Non-traditional fixed annuity. The specified rate of interest guarantees a fixed minimum rate of interest like
traditional fixed annuities. At the same time, additional interest may be credited to policy values based upon
positive changes, if any, In an established index such as the S&P 500. The amount of additional interest
depends upon the particular design of the policy. They are sold by licensed Insurance agents and regulated
by state Insurance departments.

ERRORS AND OMISSIONS Coverage / E&O
A professional liability policy covering the policyholder for negligent acts and omissions that may harm his or
her clients.

ESCROW ACCOUNT
Funds that a lender collects to pay monthly premiums In mortgage and homeowners Insurance, and
sometimes to pay property taxes.

EXCESS AND SURPLUS LINES
Property/casualty Coverage that isn’t available from insurers licensed by the state (called admitted insurers)
and must be purchased from a non-admitted carrier.

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’s company

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’s fault and In
return the injured employee gives up the right to sue when the employer’s Negligence causes the harm.

EXPENSE RATIO
Percentage of each premium dollar that goes to insurers’ expenses including overhead, marketing, and
commissions.

EXPERIENCE
Record of losses.

EXPOSURE
Possibility of loss.

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 REPLACEMENT COST Coverage
Pays a certain amount above the policy limit to replace a damaged home, generally 120 percent or 125
percent. 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

NOTICE: These glossary definitions provide a brief description of the terms and phrases used within the
Insurance industry. These definitions are not applicable In all states or for all Insurance and financial
products. This is not an Insurance contract. Other terms, conditions and exclusions apply. Please read your
official policy for full details about coverages. These definitions do not alter or modify the terms of any
Insurance contract. If there is any conflict between these definitions and the provisions of the applicable
Insurance policy, the terms of the policy control. Additionally, this informational resource is not intended to
fully set out your rights and obligations or the rights and obligations of the Insurance company, agent or
agency. If you have questions about your Insurance, you should contact your Insurance agent, the
Insurance company, or the language of the Insurance policy