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EARNED PREMIUM |
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When a premium is paid in advance for a certain time, the company is said to “earn” the premium as the time advances. For example, a policy written for three years and paid for in advance would be one-third “earned” at the end of the first year of its life. |
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ENDORSEMENT |
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A written or printed form attached to the policy that alters provisions of the contract. |
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ERRORS AND OMISSIONS |
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A type of insurance that will step in to take the place of insurance that has not been affected due to a mistake or forgetfulness. Issued to concerns such as mortgage concerns or others engaged in the routine insurance of many properties. |
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EXCESS INSURANCE |
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An excess policy is one that does not pay until the loss exceeds an agreed amount. This amount may or may not be insured elsewhere. Excess policies are not subject to the basic principle of contribution with non-excess policies, although they may contribute or share the loss with other excess policies. |
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EXCLUSION |
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Something not covered and so set forth in the wording of a policy. |
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EXPERIENCE RATING |
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Making rates based on what the past history of the insured risk has been. |
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EXPIRATION |
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A policy “expires” when the time for which it was written has run out. “Expiration” is the date on which it expires. |
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EXPOSURE |
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The danger of loss (particularly by fire) arising from what happens to another risk close by. Also the sum total of values that, if damaged or destroyed, would cause loss under a policy, i.e., the value of everything a policy insures. Also used as a measure of the rating unites or premium basis of a risk, e.g., payroll exposure or an exposure of a number of automobiles. |
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