Glossary
Insurance Terms Glossary
This page provides a glossary of insurance terms and definitions that are commonly used in the insurance business. New terms will be added to the glossary over time.
The definitions in this glossary are developed by the NAIC Research and Actuarial Department staff based on various insurance references. These definitions represent a common or general use of the term. Some words and/or phrases may be defined differently by other entities, or used in a context such that the definition shown may not be applicable.
Terms beginning with E
- Earned Premium
- – the amount of written premium less the unearned portion of the written premium; the portion of premium for which coverage has already been provided.
- Earthquake Insurance
- – coverage for losses to property resulting from an earthquake.
- Effective Date
- – the time at which insurance coverage begins.
- Elimination Period
- – time at the onset of a disability during which no insurance benefits are payable.
- Employee Leasing
- – the practice of providing temporary employees to businesses on a contract basis. The leasing firm is typically considered the employer for employee benefits including workers compensation benefits.
- Employers Liability
- – insurance purchased by employers to cover liability arising from on-the-job illness or injury to employees beyond what is required by workers' compensation.
- Endowment
- – a life insurance policy that pays the face amount to the insured if still living, at maturity, or to a beneficiary if the insured dies during the endowment period.
- Enrollment Period
- – a period during which an employee or participant may change insurance options.
- Equity Indexed Annuity (EIA)
- – an interest bearing fixed annuity tied to an equity index, such as the Dow Jones Industrial Average or S & P 500, sometimes combined with a guarantee of minimum rate of interest.
- ERISA Qualified Plan
- – an employee retirement plan that meets the requirements of the Employment Retirement Income Security Act of 1974.
- Errors And Omissions Insurance
- – professional liability insurance protecting the insured against liability for committing an error or omission in professional activities.
- Estimated Premium
- – an early estimate of premium for a policy period, subject to adjustment.
- Events Limit
- – a treaty provision that limits the reinsurer's per-event loss to a specified dollar amount.
- Excess Insurance
- – coverage above a specific amount of self-insurance or primary coverage.
- Excess Of Loss Reinsurance
- – reinsurer pays loss in excess of the ceding company's retention, subject to specified limits.
- Exclusions
- – risks, hazards, or causes of loss not covered under an insurance policy.
- Expected Loss
- – the mean value of a loss distribution function, often stated as a frequency of and severity of expected claims or losses.
- Expense Constant
- – a flat amount added to the premium to compensate for expenses disproportionately incurred by smaller insureds.
- Expense Ratio
- – the ratio of expenses to premium.
- Experience Rating
- – the process of rate adjustment determined by loss experience.
- Expiry Date
- – the date an insurance contract terminates.
- Exposure
- – amounts at risk.
- Express Authority
- – the explicit powers approved by the principal company and extended in writing to an agent.
- Extended Coverage
- – insurance endorsement providing coverage for additional causes of loss.
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