GLOSSARY

EARNED PREMIUM The portion of premium that applies to the expired part of the policy period. Insurance premiums are payable in advance but the insurance company does not fully earn them until the policy period expires

Earthquake Deductible This is the amount your loss must exceed in order for your policy to begin paying for earthquake-related losses.

Emergence Management Preparedness and Assistance Trust Fund Established in 1993 by the Florida Legislature, the trust fund is funded by surcharges on certain insurance policies and the money is used to fund emergency management activities at both the state and local level. Each of Florida's 67 counties receives an equal share annually from these funds.

Endorsement Amendment to the policy used to add or delete coverage. Sometimes referred to as a Floater or Rider.

EQUITY In investments, the ownership interest of shareholders. In a corporation, stocks as opposed to bonds.

ERRORS AND OMISSIONS COVERAGE / E&O A professional liability policy covering the agent/insurance company for negligent acts and omissions that may harm his or her clients.

EXCESS AND SURPLUS LINES Property/casualty coverage that isn’t available from insurers licensed by the state (called admitted insurers) and must be purchased from a non-admitted carrier.

EXCESS OF LOSS REINSURANCE A contract between an insurer and a reinsurer, whereby the insurer agrees to pay a specified portion of a claim and the reinsurer to pay all or a part of the claim above that amount.

EXCLUSION A provision in an insurance policy that eliminates coverage for certain risks, people, property classes, or locations.

EXCLUSIVE AGENT A captive agent, or a person who represents only one insurance company and is restricted by agreement from submitting business to any other company unless it is first rejected by the agent’s company. (See Captive Agent)

EXPENSE RATIO Percentage of each premium dollar that goes to insurers’ expenses including overhead, marketing and commissions.

EXPERIENCE Record of losses.

EXPOSURE Possibility of loss.

EXTENDED COVERAGE An endorsement added to an insurance policy, or clause within a policy, that provides additional coverage for risks other than those in a basic policy.