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.