Insurance Definitions

Back to Insurance Definitions

E

EARNED PREMIUM:  That portion of a premium for which the policy protection has already been given during the now-expired portion of the policy term.

EFFECTIVE DATE:  The date on which an insurance policy or bond goes into effect, and from which protection is furnished.

ELECTRONIC DATA PROCESSING COVERAGE (EDP):  Specialized type of insurance designed to cover computer equipment, data systems, information storage media, and expense or income losses related to EDP losses.

ELIMINATION PERIOD:  A loosely-used term sometimes designating the waiting period and sometimes the probationary period.

EMPLOYERS LIABILITY INSURANCE:  Coverage against common law liability of an employer for accidents to employees, as distinguished from liability imposed by workers compensation law.

EMPLOYERS NON-OWNERSHIP AUTOMOBILE LIABILITY:  (1) Liability arising out of the operation of an automobile not owned by the insured. This frequently results when an employee uses his own personal car in the business activities of the insured; (2) Insurance coverage for the liability exposure mentioned above.

ENDORSEMENT:  A form attached to the policy bearing the language necessary to change the terms of the policy to fit special circumstances.

ENGLISH JURISDICTION CLAUSE:   A condition, printed in the MAR form of policy, whereby Underwriters agree to recognize judgments only from courts convened within English jurisdiction. Subscribing Underwriters may agree to replace this clause with a foreign jurisdiction clause. Please note this is not applicable to business emanating from the United States of America which is subject to the Service of Suit Clause (USA) appearing in the Standard Conditions.

ENGLISH LAW AND PRACTICE:   This clause appears in Institute clauses published for use with the MAR form or policy. It applies where a foreign jurisdiction clause attaches to the policy and requires that the foreign court shall base its decisions on English law and practice.

ERISA (Employment Retirement Income Security Act of 1974):  A federal law that established rules and regulations to govern private pension plans. Most self-insured health plans are created under this act.

EVIDENCE OF INSURABILITY:  Any statement of a person's physical condition, occupation, etc., affecting his acceptance for insurance.

EXCLUSIONS:  Specified hazards for which a policy will not provide benefit payments. (Often called Exceptions)

EXPERIENCE:  The loss record of an insured, class of coverage, or of an insurance company.

EXPERIENCE RATING:  Determination of the premium rate for an individual risk, made partially or wholly on the basis of that risk's own past claim experience.

EXPOSURE:  (1) State of being subject to the possibility of loss; (2) extent of risk as measured by payroll, gate receipts, area, or otherwise; (3) possibility of loss to a risk being caused by its surroundings.

EXTENDED COVERAGE ENDORSEMENT:  A specific endorsement attached to a Standard Fire policy, usually providing coverage of windstorm, hail, explosion, riot, riot attending civil strike, aircraft, vehicular damage, smoke and civil commotion.

EXTENDED REPORTING PERIOD (ERP):  A period allowed for making claims after expiration of a "claims made" liability policy. Also known as a "tail."