Glossary

The excess loss premium (ELP) factor is a factor used to calculate the charge to an insured under a retrospective rating plan to limit individual losses to a specified level. In other words, with an ELP factor, the insured elects to limit the effect of any single loss in return for additional premium.

Excess of loss occurs when the reinsurance limit attaches above a per occurrence or aggregate limit.

Excess of loss reinsurance is a form of reinsurance that indemnifies the ceding company for the portion of a loss that exceeds its own retention. It is generally used in casualty lines.

Excess per risk reinsurance indemnifies the ceding company against the amount excess of the specified retention with respect to each risk involved in each occurrence. This coverage is written subject to a specified limit and is generally used in property lines.

The excess point is the dollar attachment point for the reinsurer.

Excess workers compensation insurance is a type of coverage available for risks that choose to self-insure the majority of workers compensation loss exposures. Two categories of coverages are available: specific, which controls loss severity by placing a cap on losses the insured must pay arising out of a single occurrence, and aggregate, which addresses loss frequency by providing coverage once a cumulative per occurrence loss limit is breached.

Exchange transfer embargo indemnity is insurance on the transfer risks created when an overseas sale by the insured is paid in the currency of the buyer's country and the payment is deposited to the insured's account in the buyer's country. It is also possible to secure insurance where a contract is taken in currency other than that of the buyer's country if the same fund transfer risk is apparent.

An exclusion is a provision of an insurance policy or bond referring to hazards, perils, circumstances, or property not covered by the policy. Exclusions are usually contained in the coverage form or causes of loss form used to construct the insurance policy.

An exclusive agency system is an insurance distribution system through which agents represent only one company or a group of companies under similar management.

Exclusive remedy is a component of workers compensation statutes that bars employees injured on the job from making a tort liability claim against their employers. The benefits provided under workers compensation are the sole remedy available to injured employees. There are exceptions to this rule varying from state to state that do provide the employee with a legal venue. The failure to obtain and maintain insurance as well as willful negligence on the part of the employer are two types of such deviations.