GLOSSARY OF TERMS

E TERMS

Earned Premium: The amount of premium that has been used for certain

periods of time

Earth Movement or Earthquake Exclusion: An exclusion found in most

property insurance policies eliminating coverage for earth movement or

earthquake, except ensuing fire

Effective Date: The date on which an insurance binder or policy goes

into effect

Electrical Damage or Injury Exclusion: An exclusion usually contained in

property insurance policies eliminating coverage for damage to

electrical appliances caused by artificially generated currents, except

for ensuing fire or explosion

Employee Dishonesty Coverage: Coverage for theft of money, securities

or property by an employee

Employee Leasing: A staffing method which an employee leasing

company provides all or most of its client's employees

Employers Excess Indemnity Insurance: Insurance coverage purchased

by employers that do not subscribe to the Texas Workers' Compensation

law

Employers Liability Coverage: Part 2 of the Workers' Compensation

policy which pays on behalf of the employer all sums that the employer

becomes legally obligated to pay because of bodily injury by accident or

disease sustained by any employee of the insured arising out of and in

the course of his employment by the insured

Employment Practices Liability Insurance: A form of liability insurance

covering wrongful acts arising from employment practices such as

wrongful termination, discrimination and sexual harassment

Endorsement: A document attached to an insurance policy that changes

the original policy provisions

Equipment Floater: A property insurance coverage for equipment that is

often moved from place to place

Estimated Premium: A preliminary premium amount that could be

adjusted based on a variance in exposures

Evidence of Insurability: Any statement or proof of a person's physical

condition, occupation, etc., affecting acceptance of the applicant for

insurance.

Excess and Surplus Lines Insurance: Coverage that is provided by

insurers not licensed in the states where the risk is located

Excess Liability Policy: A policy that provides additional limits in

excess of an underlying liability policy

Exclusions: Specified hazards listed in a policy for which benefits will

not be paid.

Expected or Intended: An exclusion for injury or damage that is

expected or intended

Expediting Expense Coverage: Coverage providing reimbursement of

expenses for temporary repairs and costs incurred to speed up the

permanent repair or replacement of covered property or equipment

Expense Constant: A small flat expense charged to Workers'

Compensation policies

Experience Modifier: A debit or credit factor developed by measuring the

difference between the insured's actual past experience and the

expected or actual experience of the class of business

Expiration: The ending date of an insurance policy

Exposure Base: The basis of rates that are applied to determine

premium. Some exposures may be measured by payroll, receipts, sales,

square footage, area, man-hours or per unit

Extra Expense Coverage: Coverage for reimbursement of expenses in

excess of normal operating expenses that are incurred to continue

operations after a direct damage loss

Extraterritorial Coverage: The coverage for extending workers'

compensation law to provide benefits for workers hired in one state but

injured while working in another state