Life Insurance and Life Settlement Terms - E
Early Writing System
A system of measuring insurers’ financial steadiness set up by insurance industry regulators. An instance is the Insurance Regulatory Information System (IRIS), which uses financial ratios to recognize insurers in need of regulatory attention.
Earned Premium
The part of premium that applies to the expired part of the policy period. Insurance premiums are to be paid in advance but the insurance company does not completely earn them until the policy period expires.
Earthquake Insurance
Covers a building and its contents, but comprises a large percentage deductible on each. A special policy or endorsement exists as earthquakes are not covered by standard homeowners or most business policies.
Economic Loss
Total financial loss resulting from the death or disability of a wage earner, or from the demolition of property.
Elimination Period
A type of deductible or waiting period typically found in disability policies.
Eligibility Period
In contributory group insurance plans, the period of time, typically 31 days, during which a new group member can apply for group insurance coverage.
Employers Dishonesty Coverage
Covers direct losses and damage to businesses resulting from the deceitful acts of employees.
Endorsement
A written form attached to an insurance policy that changes the policy’s coverage, terms, or conditions.
Endowment Insurance
Life insurance that gives a policy benefit payable either when the insured expires or on a specified date if the insured is still alive on that date.
Environmental Liability Coverage
A type of insurance designed to cover losses and liabilities arising from damage to property caused by pollution.
Errors Omissions Coverage
A professional liability policy covering the policyholder for neglectful acts and omissions that may harm his or her clients.
Error and Omissions (E&O) Insurance
Insurance designed to cover claims that result from the negligent acts or errors of an agent, including (1) his or her vicarious liability stemming from neglectful acts or (2) mistakes committed by individuals for whom the agent is lawfully liable.
Escrow Account
Funds that a lender collects to disburse monthly premiums in mortgage and homeowners insurance, and at times to pay property taxes.
Escrow
Funds held by a third party awaiting the conditions of a contract are met. In life settlements, the lump sum paid to the insured is held in escrow until the transfer of possession and change in beneficiary are recorded.
Escrow Agent
A disinterested third party financial institution with the accountability of holding assets in safe keeping then distributing those assets upon finishing point of the transaction.
Escrow Companies
An Escrow concern is a neutral third party that by a legal arrangement gets the money to be held in a trust pending a contingency or the fulfillment of conditions in a contract like the payment of a purchase price.
Estate
Estate is a term used in common law to indicate the total of a person's property, entitlements and obligations.
Estate Plan
A plan that addresses how finest to preserve an individual’s assets after the individual dies. Life insurance is frequently a vital part of an estate plan.
Evidence of Insurability
Evidence that a person is an insurable risk.
Extended Term Insurance
Most of the policies gives this provision of continuing the existing sum of insurance as Term Insurance for as long a period of time as the contract's cash value will buy.
Excess Surplus Lines
Property/casualty coverage that isn’t available from insurers licensed by the state and ought to be bought from a non admitted carrier.
Excess of Loss Insurance
A contract among an insurer and a reinsurer, whereby the insurer agrees to pay a specified portion of a claim and the reinsurer to disburse all or a part of the claim above that amount.
Exclusion
A provision in an insurance policy that eliminates coverage for definite risks, people, property classes, or locations.
Exclusion Rider
An attachment to a health insurance policy that excludes or limits coverage for exact health impairment.
Expected Mortality
The number of deaths that have been predicted to happen in a group of people at a given age.
Exclusive Agent
A captive agent, or a person who represents only one insurance concern and is restricted by agreement from submitting business to any other concern unless it is first rejected by the agent’s concern.
Exclusive remedy
Part of the social contract that forms the basis for workers compensation statutes under which employers are responsible for work-related hurt and disease, in spite of of whether it was the employee’s fault and in return the injured employee gives up the right to charge when the employer’s negligence causes the harm.
Expense Ratio
Percentage of every premium dollar that goes to insurers’ expenses comprising overhead, marketing and commissions.
Extended coverage
An endorsement added to an insurance policy, or clause within a policy, that gives additional coverage for risks other than those in a essential policy.
Extended Replacement Cost Coverage
Pays a certain amount above the policy limit to restore a damaged home, generally 120 percent or 125 percent. Akin to a guaranteed replacement cost policy, this has no percentage limits.
Extended Term Insurance Option
A nonforfeiture option in which the net cash value of a policy is applied as a net single premium to buy paid-up term insurance. The amount of term insurance is equal to the death benefit of the policy being surrendered less any due policy loans.
Extra-Percentage Tables Method
A usually used plan for rating substandard risks. In this method, every substandard class is charged a premium rate that is a certain percentage above the standard premium rate.
