Insurance Glossary   A · B · C · D · E · F · G · H · I · J · K · L · M · N · O · P · Q · R · S · T · U · V · W · X · Y · Z     Glossary : E   Earned Premium That portion of a policy's premium payment for which the protection of the policy has already been given. For example, an insurance company is considered to have earned 75 percent of an annual premium after a period of nine months of an annual term has elapsed. Economic Policy Special type of participating whole life insurance in which the dividends are used to buy term insurance or paid-up additions equal to the difference between the face amount of the policy and some guaranteed amount. Education Fund One of the uses of life insurance. It is designed to provide money for a child's education should the breadwinner of the family die. Effective Date The date on which the insurance under a policy begins. Electronic Funds Transfer (EFT) A transaction that allows payers to have premium payments drawn directly from their bank accounts, eliminating the need to write checks. 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, frequently 31 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. The period of time under a Major Medical policy during which reimbursable expenses may be accrued. Elimination Period The period of time between the date the illness or disability commences and the beginning of the benefit payment period. It is sometimes referred to as the Qualifying Period. Emergency Fund One of the uses of life insurance which provides money for the emergency expenses of a deceased's family prior to the final settlement of the estate. Endorsement 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. Endow When an insurance policy's guaranteed cash value equals the initial death benefit, it is said to "endow" or mature. Whole Life contracts typically endow at the insured's age 100. Endowment Insurance An insurance policy that pays a stated amount at the end of a specified period or upon the death of the insured if it occurs within that period. Entity Plan The arrangement whereby the business, rather than an individual owner, purchases the insurance that will be used to secure the business in the event of an owner's death. Estate Planning Planning for the orderly handling and administration of an estate upon the death of the owner. This usually involves drawing up a will and setting up trusts and insurance, with the intention of minimizing loss to the estate value incurred by estate taxes and administrative expenses. Evidence of Insurability Any statement of proof of a person's physical condition and/or other factual information affecting his/her acceptance for insurance. Examiner A physician appointed by the medical director of a life insurer to examine applicants. Exclusion Provision that indicates a circumstance or event, such as an act of war, for which benefits will not be paid. Executive Bonus Plan A plan whereby an employee owns a life insurance policy that was purchased, all or in part, by the employer. The employee treats the employer's payments as reportable income for tax purposes. The employer deducts its payments as compensation under IRC §162. Also known as an Employee Bonus Plan. Expected Mortality The number of deaths which theoretically will occur among a group of people during a given period of time, according to the mortality table in use. Expense Charges The charges assessed against a policy to cover part or all of the insurance company's acquisition and maintenance expenses related to issuing and servicing the policy, including charges covering various federal, state and local taxes. Expiration Date or Expiry The date on which the insurance policy ceases to protect the policyowner. Extra Premium or Extra Percentage Table The amount charged in addition to the regular rate to cover any extra hazard or special risk. Usually this premium is shown as a percentage of the standard premium. A form of Sub-Standard Risk rating.