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Term Definition
E&O errors and omissions (liability insurance)
E&S excess and surplus (lines)
EA Enrolled Actuary
EAB experience account balance
EAP employee assistance program; estimated annual premium
EAR erection all risk (insurance)
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.
EBIDDA earnings before interest, dividends, depreciation, and amortization
EBRI Employee Benefit Research Institute
EC extended coverage (endorsement)
ECC Eastern Claims Conference
ECF extended care facility
ECFC Employers Council on Flexible Compensation
ECI export credit insurance
ECO extracontractual obligations
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.

ECOR economic cost of ruin
ECP exempt commercial policyholder
ECPA Electronic Communications Privacy Act
EDD enforcement decision document
EDI export development corporation
EDP electronic data processing; extended discovery period/provision
EEL emergency exposure limits
EEOC Equal Employment Opportunity Commission
EFT electronic funds transfer
EH&S environmental health and safety
EIFS exterior insulation and finish systems
EIL environmental impairment liability
EIS environmental impact statement
EJCDC Engineering Joint Contracts Documents Committee
EL employers liability; expected loss
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.
ELL educators legal liability (insurance)
ELP excess loss premium (factor)
ELR expected loss rate
EMAP Environmental Monitoring and Assistance Program
EMPLOYEE DISHONESTY COVERAGE

Covers direct losses and damage to businesses resulting from the dishonest acts of employees. (See Fidelity bond)

EMPLOYEE RETIREMENT INCOME SECURITY ACT / ERISA Federal legislation that protects employees by establishing minimum standards for private pension and welfare plans.
EMPLOYERS 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. (See Exclusive remedy)

EMPLOYMENT PRACTICES LIABILITY COVERAGE

Liability insurance for employers that covers wrongful termination, discrimination and other violations of employees legal rights.

EMT emergency medical technician
ENCP ERISA Non-Compliance Program
ENDORSEMENT

A written form attached to an insurance policy that alters the policy 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.
EP earned premium
EPA Environmental Protection Agency
EPD expected policyholder deficit
EPL employment practices liability
EPLI employment practices liability insurance
EPS earnings per share
EQUITY In investments, the ownership interest of shareholders. In a corporation, stocks as opposed to bonds.
EQUITY INDEXED ANNUITY

Nontraditional 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.

ERD expected reinsurer deficit
ERIC ERISA Industry Committee
ERISA Employee Retirement Income Security Act
ERM enterprise risk management
ERP extended reporting period
ERPL employment-related practices liability (policy)
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.
ERSC Environmental Response Services Contractor
ESA employee spending account; environmental site assessment
ESCROW ACCOUNT Funds that a lender collects to pay monthly premiums in mortgage and homeowners insurance, and sometimes to pay property taxes.
ESH environmental safety and health
ESOP employee stock ownership plan
ESOT employee stock ownership trust
ETB engaged in trade or business
EVA economic value added
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 nonadmitted 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. (See Captive agent)

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 it 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.

EXIMBANK Export-Import Bank of the United States
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.

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