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Earned Premium - The amount of the premium that as been paid for in advance that has been "earned" by virtue of the fact that time has passed without claim. A three-year policy that has been paid in advance and is one year old would have only partly earned the premium.
Effective date - The date on which the cover of an insurance policy commences.
Elimination Period - The time which must pass after filing a claim before policyholder can collect insurance benefits. Also known as "waiting period."
Employers Liability Insurance - Coverage against common law liability of an employer for accidents to employees and 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.
Endorsement - a special condition that applies to a policy. For example, an endorsement may state that drivers under a nominated age are not covered under the policy.
Escalator Clause - A clause allowing for adjustment of the insured value in certain non-marine material damage insurances. The term is applied, also, to a similar clause in insurance conditions covering a ship under construction.
Excess - An excess on a policy is the first amount that must be contributed by the insured towards each claim. When one or more excesses apply to a policy, they will be shown on the insurance schedule and updated on the renewal notice.
Excess Liabilities - Insurance to cover the excess amount of liability for general average contributions, salvage charges, sue and labour charges and three-fourths collision liability where the full amount is not covered by a hull policy.
Excess of Line Re-Insurance - A re-insurance to cover that part of the original underwriter’s acceptance which is in excess of his retained line.
Excess of Loss Re-Insurance - A re-insurance to cover that part of a loss paid by the reinsured which is in excess of an agreed maximum loss.
Exclusions - Items or conditions that are not covered by the general insurance contract.
Expense 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.
Expense ratio A measure of an insurers expenses in operating its business.
Expired policy See lapsed policy.
Expiry date The date coverage ceases.
Exposure - Measure of vulnerability to loss, usually expressed in dollars or units.
