Dictionary – Early Georgian – Extra-Risk Policy

EARLY GEORGIAN – Also known as WILLIAMSBURG GEORGIAN – An English style house built in Williamsburg a representative of the early Georgian houses built in America throughout the early 1700’s. They had simple exterior lines and generally fewer of the decorative devices characteristic of the later Georgian houses. Most were two- or three-story rectangular houses with two large chimneys rising high above the roof at each end.

EARLY RETIREMENT – Retirement of a participant prior to the normal retirement date.  Generally allowed at any time during a period of five to ten years preceding the normal retirement date, it usually has a reduced amount of ANNUITY.

EARNED INCOME – Employment income derived from salary, wages, commissions, or fees.

EARNED INCREMENT – A form of APPRECIATION resulting from some action of the property owner  such as improvement and maintenance.

EARNED PREMIUM – 1) That portion of a policy’s PREMIUM payment for which the protection of the policy has already been given; 2) the part of the total PROPERTY/CASUALTY INSURANCE PREMIUM which applies to the part of the policy period which has already expired; 3) the share of a PREMIUM which is the belongs to the INSURANCE COMPANY based on the expired portion of the policy period.

EARNEST DEPOSIT – Also known as DEPOSIT, EARNEST MONEY and HAND MONEY – The money given by a purchaser with an offer to show sincerity or GOOD FAITH.

EARNEST MONEY – Also known as DEPOSIT, EARNEST DEPOSIT and HAND MONEY – The money given by a purchaser with an offer to show sincerity or GOOD FAITH.


EARNINGS TEST (RETIREMENT TEST) – Determination of the amount of Social Security BENEFITS payable to a BENEFICIARY after adjusting for earnings


LAND owned by another which allows the first person a limited use or enjoyment of the LAND of the second.

EASEMENT APPURTENANT – Also known as APPURTENANT EASEMENT – An EASEMENT, which benefits another PARCEL of REAL PROPERTY. The PARCEL to which the EASEMENT belongs is the DOMINANT TENEMENT, and the PARCEL over which the easement runs is the SERVIENT TENEMENT. This type of EASEMENT runs with the LAND, and will transfer form one owner to another.

EASEMENT BY NECESSITY – An EASEMENT created by law, usually to allow the owner of a landlocked PARCEL OF REAL PROPERTY the rights of INGRESS AND EGRESS.

EASEMENT BY PRESCRIPTION – An EASEMENT acquired adversely from the owner of REAL PROPERTY, where the possession or the use of LAND by the TRESPASSER has been obvious, continuous, and hostile and for a minimum time prescribed by law.

EASEMENT BY RESERVATION – An EASEMENT created when the owner of one PARCEL of REAL PROPERTY splits that PARCEL into two LOTS but reserves the right to cross one of those LOTS when that lot is sold.

EASEMENT IN GROSS – An EASEMENT which benefits a natural or legal person rather than another PARCEL of REAL PROPERTY, usually providing access for the service and maintenance of equipment. Examples include UTILITY EASEMENTS, power line easements and outdoor advertising or billboard easements.

EASTERN TOWNHOUSEAlso known as BRICK ROW HOUSE OR BROWNSTONE – A nineteenth-century-style house, usually having four or five stories with a stoop leading up to the first floor. There are common sidewalls with a house on either side.

EASTLAKE HOUSE – A nineteenth century style house with three-dimensional ornamentation made with a chisel, gouge, and lathe rather than the scroll saw. Many of the parts of the ornamentation resemble furniture legs and knobs. This distinctive type of ornamentation is the major characteristic of this style and separates the Eastlake style house from the QUEEN ANNE or Carpenter Gothic Style.

EAVES – The lower part of the roof, which extends beyond the exterior walls.

ECONOMIC BASE – Industry within a geographic MARKET AREA that provides employment opportunities that are essential to support the community.

ECONOMIC LIFE – The period of time over which improvements to REAL PROPERTY will contribute to the total PROPERTY VALUE.

ECONOMIC LOSS – The estimated total cost of mishaps, both insured and uninsured such as motor vehicle accidents, work accidents, and fires. Includes such factors as property damage, funeral expenses, wage loss, insurance administration costs, and medical, hospital and legal costs.


ECONOMIC POLICY – Special type of participating WHOLE LIFE INSURANCE where the DIVIDENDS are used to buy TERM INSURANCE or PAID-UP ADDITIONS in an amount equal to the difference between some guaranteed amount and the FACE AMOUNT of the POLICY.

ECONOMIC RENT – Also known as MARKET RENT and REPLACEMENT RENT – The amount of RENT that would be paid for the REAL PROPERTY in an open competitive market at any given time – in contrast to CONTRACT RENT.

EFFECTIVE AGE – The age of the improvements as indicated by their condition and utility; used in the observed condition method of estimating DEPRECIATION.

EFFECTIVE DATE – The date on which the INSURANCE under a POLICY begins.

EFFECTIVE GROSS INCOMEINCOME calculated by the SCHEDULED GROSS INCOME plus the SUPPLEMENTAL INCOME less an allowance for vacancies and bad debts.

EFFECTIVE RATE – The true rate of return considering all relevant financing expenses.

EFFICIENCY RATIO – The proportion of a building’s area that is rentable space.

EFFICIENCY UNIT OR APARTMENT – A small DWELLING UNIT, often consisting of a single room, within a MULTIFAMILY structure. In most cases, kitchen and bath facilities are not complete.

EFFICIENT LEVEL OF RISK – The amount of RISK remaining after an individual or business pursues activities such as LOSS CONTROL, loss financing, and internal risk reduction, to the point where marginal benefit equals marginal cost.

EGRESS – Access from a LAND PARCEL to a public road or other means of exit.

EJECTMENT – Action to regain possession of REAL PROPERTY when there is no LEASE.

ELEMENTS OF A NEGLIGENT ACT – Four elements which an injured person must show to prove NEGLIGENCE: 1) existence of a legal duty to use reasonable care; 2) failure to perform that duty, 3) DAMAGES or injury to the claimant; and 4) PROXIMATE CAUSE relationship between the negligent act and the infliction of DAMAGES.

ELEMENTS OF VALUE – The four elements which create VALUE in REAL PROPERTY:

(1) demand, (2) utility, (3) scarcity, and (4) transferability. (DUST)

ELIGIBILITY DATE – The date on which an individual member of a specified group becomes eligible to apply for INSURANCE under the GROUP LIFE or HEALTH INSURANCE PLAN.

ELIGIBILITY PERIOD – A specified length of time, usually thirty-one days, following the ELIGIBILITY DATE during which an individual member of a particular group will remain eligible to apply for INSURANCE under a GROUP LIFE or HEALTH INSURANCE POLICY without EVIDENCE OF INSURABILITY.

ELIGIBILITY REQUIREMENTS – (1) the conditions which an employee must satisfy to participate in a retirement plan or (2) conditions which an employee must satisfy to obtain a retirement benefit.


ELIMINATION PERIOD – Also known as WAITING PERIOD – A period of time between the period of DISABILITY and the start of DISABILITY INCOME INSURANCE BENEFITS, during which no BENEFITS are payable.  The elimination period may be as short as a few days or as long as one year or more.  

ELIZABETHAN STYLEAlso known as HALF TIMBER STYLE – An English style, two or two and a half story house, often with part of the second story overhanging the first. It has less stonework and is less fort-like than the TUDOR. Stone and stucco walls with half timbers are most common.

ELLWOOD TECHNIQUE –  A technique developed by L.W. Elwood used to APPRAISE INCOME PROPERTY.  Ellwood created a special table of CAPITALIZATION RATES that take into account the CASH FLOW, EQUITY, MORTGAGE and EQUITY YIELD to establish the APPRAISED VALUE of INCOME PROPERTY

EMBEDDED VALUE – The sum of these two elements: (1) shareholders’ EQUITY considering the ASSETS at MARKET VALUE and (2) in-force LIFE INSURANCE business valued at the present value of future after-tax statutory profits.

EMBEZZLEMENT – Fraudulent use or taking of another’s PROPERTY or money which has been entrusted to one’s care.

EMBLEMENTS – Cultivated crops which are produced on LEASED REAL PROPERTY by the labor of the renter and which legally belong to the LESSEE even after the expiration of the LEASE. Emblements apply only to agricultural circumstances and crops which have a growing cycle of one year or less.

EMINENT DOMAIN – The right of the government to acquire private REAL PROPERTY for public use, such as property taken for the widening of streets or the construction of freeways. Eminent domain has two major components: (1) the CONDEMNATION of the PROPERTY, and (2) the payment of a FAIR MARKET VALUE to the owner for the PROPERTY taken.

EMPLOYEE – A person hired to perform certain acts under the supervision of a superior and according to the superior’s methods.

EMPLOYEE DISHONESTY COVERAGE FORM Commercial crime insurance form drafted by the INSURANCE SERVICES OFFICE that covers the loss of money, SECURITIES, and other covered PROPERTY because of any dishonest act of a covered employee or employees.

EMPLOYEE RETIREMENT INCOME SECURITY ACT (ERISA) – Legislation passed in 1974 applying to most private pension and welfare plans that requires certain minimum standards to protect participating employees.

EMPLOYERS CONTINGENT LIABILITY INSURANCE – Protects the employer for injuries sustained by an employee in the course of employment where he is otherwise not eligible for coverage under a WORKERS COMPENSATION ACT in a jurisdiction where the injury took place.

EMPLOYMENT STOCK OWNERSHIP PLAN (ESOP) A defined contribution pension plan which is designed to invest primarily in employer SECURITIES.

EMPTY NESTERS – A couple whose children have established separate households. Since empty nesters often seek to reduce the amount of housing space they occupy, they are an important segment of the housing market, especially as a source of demand for smaller housing units.

ENABLING ACTS – Also known as ENABLING LEGISLATION – The laws, which create the authority for a political unit to carry on an activity or to do something, which was not previously authorized.

ENABLING LEGISLATION – Also known as ENABLING ACTS – The laws which create the authority for a political unit to carry on an activity or to do something which was not previously authorized.


ENCROACHMENT – A BUILDING, a part of a BUILDING or an obstruction that physically intrudes upon, overlaps or TRESPASSES upon the PROPERTY of another.

ENCUMBRANCE – Any claim, lien, or liability, which clouds the title to real property but does not necessarily prevent its conveyance.

ENDORSEMENT – 1) The act of signing one’s name as the payee, on the back of a check or note, with or without further qualification; 2) the signature itself; offering support or credibility to a statement; 3) an amendment of the policy usually by means of a rubber stamp or rider; 3) an additional piece of paper, not a part of the original CONTRACT, which cites certain terms and which, when attached to the original contract, becomes a legal part of that contract.

ENDOWMENTLIFE INSURANCE payable to the POLICYHOLDER if living, on the MATURITY date stated in the POLICY or to a BENEFICIARY if the insured dies prior to that date.

ENERGY EFFICIENT – As applied to buildings, generally indicating the existence of extra insulation, weatherproofing, and/or special features and equipment designed to reduce the cost of energy for heating, cooling and hot water.

ENROLLED ACTUARY – A person who performs actuarial service for a plan and who is enrolled with the Federal Joint Board for the Enrollment of Actuaries.

ENROLLMENT CARD – A document signed by an employee as notice of her/his desire to participate in the BENEFITS of a GROUP INSURANCE PLAN.

ENTIRE CONTRACT CLAUSE – Provision in LIFE INSURANCE POLICIES stating that the LIFE INSURANCE POLICY and attached application constitute the entire CONTRACT between the parties.

ENTITY – The legal form under which PROPERTY is owned.

ENTITY PURCHASE AGREEMENT – Specifies the terms for the business to buy back a deceased’s share of the business’s ownership.

ENTREPRENEUR – 1) An individual who generates business activity; 2) a businessman or businesswoman; 3) often associated with one who takes business RISKS.

ENVIRONMENTAL ASSESSMENT (EA) – A study of LAND to determine any unique environmental attributes including everything from endangered species to existing hazardous waste and historical significance. Depending on the findings of an EA, an ENVIRONMENTAL IMPACT STATEMENT may or may not be needed.

ENVIRONMENTAL AUDIT – A study of the PROPERTY and its area to determine whether there are any HAZARDS.

ENVIRONMENTAL IMPACT STATEMENT (EIS) – An analysis of the expected effects of a development or action on the surrounding natural and fabricated environment. Such statements are required for many federally supported developments under the National Environmental Policy Act of 1969.

ENVIRONMENTAL IMPAIRMENT LIABILITY INSURANCE – A form of INSURANCE designed to cover losses and LIABILITIES arising from DAMAGE to PROPERTY by pollution.


ENVIRONMENTAL PROTECTION AGENCY (EPA) – An agency of the U.S. government established to enforce federal pollution ABATEMENT laws and implement various pollution prevention programs.

EQUAL CREDIT OPPORTUNITY ACT – A federal law, enacted in 1974, to discourage DISCRIMINATION by lenders on the basis of sex or marital status. Amended in 1976 to prohibit DISCRIMINATION on the basis of age, race, color, religion, national origin, or receipt of public assistance.

EQUALIZATION BOARD – A government agency that determines the fairness of taxes levied against properties.

EQUITABLE CONVERSION – A legal doctrine in some states in which, under a CONTRACT of sale, buyers and sellers are treated as though the closing had taken place in that the seller in possession has an obligation to take care of the PROPERTY.

EQUITABLE RIGHT OF REDEMPTION – The right of a DEFAULTED MORTGAGOR to recover the PROPERTY by paying off the entire NOTE before the FORECLOSURE SALE.

EQUITABLE TITLE – Also known as EQUITY INTEREST – 1) The INTEREST held by one who has agreed to purchase but has not yet closed the transaction; 2) the INTEREST a buyer has in REAL PROPERTY, which he or she is purchasing under an INSTALLMENT contract or PURCHASE AGREEMENT.

EQUITIES – Investments in the form of ownership of PROPERTY, usually COMMON STOCKS, as distinguished from fixed income bearing securities, such as BONDS or MORTGAGES.

EQUITY – The INTEREST of the owner of REAL PROPERTY, usually the MARKET VALUE of the ASSET minus any DEBTS against it.


EQUITY DIVIDED – The annual CASH FLOW that an EQUITY investor receives. See also EQUITYYIELD RATE, RETURN ON EQUITY.

EQUITY INTEREST – Also known as EQUITABLE TITLE – 1) The INTEREST held by one who has agreed to purchase but has not yet closed the transaction; 2) the INTEREST a buyer has in REAL PROPERTY, which he or she is purchasing under an INSTALLMENT contract or PURCHASE AGREEMENT.

EQUITY IN THE UNEARNED PREMIUM RESERVE – Amount by which an unearned PREMIUM RESERVE is overstated because it is established on the basis of GROSS PREMIUM rather than NET PREMIUM.

EQUITY OF REDEMPTION – The right of an owner to redeem PROPERTY securing a loan that has been accelerated prior to FORECLOSURE.

EQUITY YIELD RATE – The rate of return on the EQUITY portion of an INVESTMENT, taking into account periodic CASH FLOW, the proceeds for resale,  the timing and amounts of CASH FLOW after annual DEBT SERVICE, but not income taxes.  See also EQUITY DIVIDED,  RETURN ON EQUITY.

EROSION – The gradual wearing away of LAND through process of nature, as by streams and winds.

ERRORS AND OMISSIONS INSURANCE – 1) LIABILITY protection against professional malpractice, mistakes in business dealings by insured, etc.; 2) LIABILITY INSURANCE POLICY that provides protection against LOSS incurred by a client because of some negligent act, error, or omission by the INSURED.; 3) a form of INSURANCE that indemnifies the INSURED for any loss sustained because of an error or oversight on his or her part.

ESCALATOR CLAUSE – A clause in a CONTRACT permitting adjustments of payments either up or down during the term of the CONTRACT upon occurrence of certain stipulated conditions.

ESCAPE CLAUSE – A provision in a CONTRACT that allows one or more of the parties to cancel all or part of the CONTRACT of certain events or situations which do or do not happen.

ESCHEAT – The right of the government to acquire REAL PROPERTY by REVERSION when the PROPERTY owner dies INTESTATE and without HEIRS who can be found. REAL PROPERTY ESCHEATS to the state in which it is located.

ESCROW – An agreement between two or more parties providing that certain instruments or PROPERTY be placed with a third party for safekeeping, pending the fulfillment or performance of a specified act or condition.

ESCROW AGENT – Any person engaged in the business of receiving ESCROWS for deposit or delivery.

ESCROW CLOSING – Also known as CLOSING, especially in states where DEEDS OF TRUST are used instead of MORTGAGES –  The act of transferring ownership of a PROPERTY from seller to buyer in accordance with a SALES CONTRACT.

ESTATE – 1) The degree, quantity, or extent of INTEREST which a person has in REAL PROPERTY; 2) the ASSETS and LIABILITIES of a person left at death.

ESTATE AT SUFFERANCE – The wrongful occupancy of PROPERTY by a TENANT after the LEASE has expired.

ESTATE AT WILL – The occupation of REAL ESTATE by a TENANT for an undefined period, terminable by one or both parities at will.

ESTATE FOR LIFE – An interest in PROPERTY that terminates upon the death of a specified person.

ESTATE FOR YEARS – An interest in LAND allowing possession for a specified and limited time.


TENANCY FROM YEAR TO YEAR – A LEASEHOLD interest for a definite period of time which automatically renews itself at each expiration. Because of the automatic RENEWAL, one of the parties must take some positive action, such as proper notification to the other party, to terminate the LEASEHOLD.

ESTATE IN REMAINDER – An ESTATE created when the GRANTOR gives an interest in REAL PROPERTY to the GRANTEE for the GRANTEE’S lifetime, with an immediate but unfulfilled interest to a third person (REMAIDERMAN). At the death of the GRANTEE, the PROPERTY automatically passes to and remains with the REMAINDERMAN.

ESTATE IN REVERSION – An ESTATE created when the GRANTOR gives an interest in REAL PROPERTY to the GRANTEE for the GRANTEE’S lifetime, with an immediate but unfulfilled interest back to the GRANTOR. At the death of the GRANTEE, the property automatically reverts to the GRANTOR.

ESTATE PLANNING – Developing a plan to transfer all of your PROPERTY from one generation to the next or within a generation.

ESTATE TAX – A tax based on the VALUE of PROPERTY left by the deceased.

ESTOPPEL – A doctrine of law that stops a person from later denying facts which that person once acknowledged were true and others accepted on GOOD FAITH.

ESTOPPEL CERTIFICATE – Also known as DECLARATION OF NO SET-OFF and CERTIFICATE OF NO DEFENSE – A document signed by the borrower indicating the date of the most recent payment, the exact PRINCIPAL balance due and the INTEREST RATE.

ESTOVERS – The legally supported right to take necessities from PROPERTY. Contrast with WASTE.

ET AL – The Latin abbreviation for “et alii,” meaning “and others.”

ET CON – Abbreviation of the Latin “et conjunz”. Legal term signifying “and husband.”

ET UX – The Latin abbreviation for “et uxor,” meaning “and wife.”

EVALUATION – A study of potential PROPERTY uses, but does not determine its present VALUE.

EVICTION – The LESSOR depriving the LESSEE of the possession of the LEASED REAL PROPERTY, usually for non-payment of the RENT. Eviction may be either ACTUAL or CONSTRUCTIVE.

EVICTION, ACTUAL – Removal of one from the PROPERTY either by process of law or force.

EVICTION, CONSTRUCTIVE – When, through the fault of the LANDLORD, the physical conditions of the PROPERTY render it unfit for the purpose for which it was LEASED.

EVICTION, PARTIAL – When the possessor of the PROPERTY, such as a TENANT, is deprived of a portion thereof.

EVIDENCE OF INSURABILITY – Any statement of proof of a person’s physical condition and/or other factual information affecting his/her acceptance for INSURANCE.

EVIDENCE OF TITLE – Also known as EXAMINATION OF TITLE – Less thorough than a TITLE SEARCH, research of the TITLE to a piece of REAL ESTATE; usually focuses on recent records.

EXAMINATION OF TITLE – Also known as EVIDENCE OF TITLE – Less thorough than a TITLE SEARCH, research of the TITLE to a piece of REAL ESTATE; usually focuses on recent records.

EXCEPTION – Also known as EXCLUSION – Specific circumstances or conditions, listed in the POLICY, for which the POLICY will not provide BENEFITS.

EXCESS ACCELERATED DEPRECIATION – The accumulated difference between ACCELERATED DEPRECIATION claimed for tax purposes and what straight-line DEPRECIATION would have been. instead of receiving more favorable capital gains treatment, EXCESS ACCELERATED DEPRECIATION is generally recaptured as ordinary income upon a sale,.

EXCESS AND SURPLUS INSURANCE – Also known as UMBRELLA LIABILITY and SURPLUS LINES – 1) INSURANCE to cover LOSSES above a certain amount, with LOSSES below that amount usually covered by a regular POLICY; (2) INSURANCE to cover an unusual or one-time RISK, such as damage to a musician’s hands, for which coverage is unavailable in the normal market.

EXCESS RENT – The amount of CONTRACT RENT being paid in excess of the ECONOMIC RENT, which results in a NEGATIVE LEASEHOLD.

EXCHANGE – The trading of PARCELS of REAL PROPERTY to obtain tax benefits which might not be available in a normal sale. Most exchanges are considered tax-deferred and not


EXCLUSIONARY ZONING – Considered illegal, any zoning laws of a community that would serve to prohibit low and moderate-income housing.

EXCLUSIONS – Specific conditions or circumstances listed in the POLICY for which the POLICY will not provide BENEFIT payments.

EXCLUSIVE AGENCY LISTING – An employment contract that gives the LISTING BROKER the right to collect the COMMISSION if that BROKER or any other AGENT produces the buyer for the PROPERTY. If the seller obtains a buyer through their own efforts and through no cause of the BROKER, however, the LISTING BROKER is not entitled to the COMMISSION.

EXCLUSIVE AGENT – An AGENT who is employed by one and only one INSURANCE company and who solicits business exclusively for that company.

EXCLUSIVE REMEDY DOCTRINE – Eroded by legal decisions, the doctrine in WORKERS COMPENSATION INSURANCE which states that WORKERS COMPENSATION BENEFITS should be the sole or exclusive source of recovery for workers who have a job-related accident or disease.

EXCLUSIVE RIGHT-TO-SELL LISTINGS – An employment CONTRACT that gives the LISTING BROKER the right to collect the COMMISSION no matter who produces the buyer for the PROPERTY -whether it is the LISTING BROKER, any other AGENT, or even the sellers themselves. Most multiple listing services will only accept this type of LISTING.

EXCLUSION – Also known as EXCEPTION – Specific circumstances or conditions, listed in the POLICY, for which the POLICY will not provide BENEFITS.

EXCLUSION RATIO – Not subject to income tax when received, the portion of an ANNUITY payment considered by the tax law to be a return of initial INVESTMENT.

EXCLUSIVE PROVIDER ORGANIZATION (EPO) Policy whereby people who belong to an EPO must receive their care from affiliated providers.  Any services rendered by unaffiliated providers are not reimbursed.

EXCULPATORY CLAUSE – A provision in a MORTGAGE allowing the borrower to surrender the PROPERTY to the LENDER without personal LIABILITY for the LOAN.

EXECUTE – 1) To sign a CONTRACT; 2) sometimes, to perform a CONTRACT fully.

EXECUTED CONTRACT – A CONTRACT whose terms have been completely fulfilled.

EXECUTOR – A man named in a WILL to settle the ESTATE of the person who died; also used: EXECUTRIX for a woman.

EXECUTOR’S DEED – A DEED issued by the EXECUTOR of an ESTATE who was appointed through the WILL of the deceased.

EXECUTORY CONTRACT – A CONTRACT under which one or more parties has not yet performed.

EXECUTRIX – A woman named in a WILL to settle the ESTATE of the person who died; also used: EXECUTOR for a man.

EXEMPTION – An amount provided by law that reduces taxable INCOME or taxable VALUE.

EXPANSION JOINT – The space between two concrete slabs, usually filled with a fiber strip, which  prevents cracking and allow for expansion due to temperature changes.

EXPECTED CLAIM COST – The expected VALUE of the LOSS distribution for a particular group of INSURANCE CONTRACTS.

EXPECTED VALUE – The sum of LOSSES divided by the number of exposures.

EXPENSE LOADING – Also known as LOADING – The amount that must be added to the pure PREMIUM for profit, expenses and a MARGIN for contingencies.

EXPENSE RATIO – 1) The ratio of a company’s OPERATING EXPENSES to PREMIUMS; 2) a comparison of the OPERATING EXPENSES to potential GROSS INCOME. The ratio can be compared over time or with that of other PROPERTIES to determine the relative operating efficiency of the PROPERTY considered.

EXPERIENCE – A term used to describe the relationship, usually expressed as a percent or ratio, of PREMIUM to CLAIMS for a PLAN, COVERAGE, or BENEFITS for a stated time period.

EXPERIENCE MODIFICATION FACTOR – Used in WORKERS COMPENSATION rating to reflect the degree to which a particular employer has EXPERIENCE that is better or worse that expected for that industry; weighted by employer’s CREDIBILITY FACTOR.

EXPERIENCE RATING – The process of determining the PREMIUM RATE for a group RISK based wholly or partially on that group’s EXPERIENCE.

EXPERIENCE REFUND – A provision in most group POLICIES for the return of PREMIUMS to the POLICYHOLDER because of lower than anticipated CLAIMS.

EXPOSURE (MARKET) – The advertising, whether free or paid, of PROPERTY that is for sale.

EXPOSURE UNIT – Unit of measurement used in INSURANCE pricing.

EXTENDED COVERAGEINSURANCE that covers specific incidences normally excluded from standard INSURANCE POLICIES.

EXTENDED COVERAGE INSURANCE Protection for the INSURED against PROPERTY DAMAGE caused by smoke, windstorm, hail, explosion, riot, riot attending a strike, civil commotion, vehicle and aircraft. This is provided in conjunction with the FIRE INSURANCE POLICY and the various PACKAGE POLICIES.

EXTENDED NON-OWNED COVERAGE – Endorsement that can be added to an AUTOMOBILE LIABILITY INSURANCE POLICY that covers the INSURED while driving any non-owned automobile on a regular basis.

EXTENDED REPORTING PERIOD – An additional period of time after POLICY expiration during which valid CLAIMS will be paid under a CLAIMS-MADE POLICY of LIABILITY INSURANCE.


POLICY of LIABILITY INSURANCE to provide an additional period of time during which VALID CLAIMS will be paid.

EXTENDED TERM INSURANCE – A form of INSURANCE available as a NONFORFEITURE OPTION that  provides the original amount of INSURANCE for a limited period of time.

EXTENDED UNEMPLOYMENT INSURANCE BENEFITS – Additional cash benefits paid by federal/state unemployment insurance programs to workers who are involuntarily unemployed and who have exhausted their regular weekly cash benefits during periods of high unemployment.

EXTENSION – An agreement between two or more parties to extend the time period specified in a CONTRACT.


EXTORTION – Surrender of PROPERTY away from the PREMISES as a result of a threat to do bodily harm to the named INSURED, relative or invitee who is being held captive.

EXTRA EXPENSE INSURANCE – Type of BUSINESS INCOME INSURANCE that covers the extra expenses incurred to continue operations after a LOSS has occurred.

EXTRA-RISK POLICY – Also known as RATED POLICY – An INSURANCE POLICY issued at a higher-than-standard PREMIUM rate to cover the extra RISK where, for example, an insured has a hazardous occupation or impaired health.

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