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
A sudden shift or movement in the tectonic plate in the Earth’s crust. On the surface, this is manifested by a moving and shaking of the ground, and can be massively damaging to poorly built structures.
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.
EMPLOYERS LIABILTIY INSURANCE
Coverage against common law liability of an employer for accidents to employees, as distinguished from liability imposed by a workers' compensation law.
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.
EVIDENCE OF INSURABILITY
Proof that a person is an insurable risk.
EXCLUSIONS, HOMEOWNERS INSURANCE
Part of an insurance contract that excludes coverage of certain perils, persons, property or locations.
EXPERIENCE RATING
A method of calculating group insurance premium rates by which the insurer considers the particular group’s prior claims and expense experience.
EXCLUSIONS
Items or conditions that are not covered by the general insurance contract.
EXSPENSE 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.
EXPOSURE
Measure of vulnerability to loss, usually expressed in dollars or units.
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.