Term Life Insurance Glossary
E
Eligibility Period
In contributory group insurance plans, the period of time, usually 31 days, during which a new group member may apply for group insurance coverage.
Also called an enrollment period.
Elimination Period
See waiting period.
Endowment Insurance
A type of life insurance that provides a benefit (a) if death occurs during the term of coverage or (b) if, at the end of the term of coverage, the insured is alive.
Error and Omissions (E&O) Insurance
Insurance designed to cover claims that result from the negligent acts or mistakes of an agent, including (1) his or her vicarious liability stemming from negligent acts or (2) mistakes committed by individuals for whom the agent is legally liable.
Estate Plan
A plan that addresses how best to preserve an individual’s assets after the individual dies. Life insurance is often an important part of an estate plan.
Evidence of Insurability
Proof that a person is an insurable risk.
Exclusion Rider
An attachment to a health insurance policy that excludes or limits coverage for a specific health impairment.
Also called impairment rider or impairment waiver.
Exclusions
Losses for which an insurance policy does not provide benefits. For term life insurance and accidental death benefit coverages, exclusions describe causes of death for which benefits will not be paid. In health insurance policies, exclusions describe losses not covered, such as those related to pre-existing conditions, cosmetic surgery, or self-inflicted injuries.
Exclusive Agents
Career agents who are under contract with one insurance company only and who are not permitted to sell the products of other insurers.
Also known as captive agents.
Expected Mortality
The number of deaths that have been predicted to occur in a group of people at a given age.
Also known as tabular mortality.
Extended Term Insurance Option
A nonforfeiture option in which the net cash value of a policy is applied as a net single premium to purchase paid-up term insurance. The amount of term insurance is equal to the death benefit of the policy being surrendered less any outstanding policy loans. The insured maintains the same amount of coverage but usually for a shorter period of time than the original coverage.
See also nonforfeiture options.
Extra-Percentage Tables Method
A commonly used plan for rating substandard risks. Under this method, each substandard class is charged a premium rate that is a certain percentage above the standard premium rate.
Contrast with flat extra premium method.
LOMA's Glossary appears on this Web site by special permission of LOMA. However, LOMA makes no representation or endorsement, express or implied, regarding AccuQuote or its products or services.
LOMA's Glossary of Insurance Terms (c) 1997 LOMA (Life Office Management Association, Inc.). Used with permission from the publisher. All rights reserved. Copying or downloading this information without permission from the publisher is a violation of federal and international law. For information on purchasing a copy of the Glossary or for additional information on LOMA and its educational programs, visit LOMA's Web site at www.loma.org.
