Glossary

An expiration file is a record kept by agents of policies that have expired or are about to expire.

An expiration notice is a written or electronic communication to the insured that coverage is about to expire.

The exportability of premium/risk refers to the percent of premium in a multinational insurance program that is allowed by each jurisdiction (country) to be exported from a local policy to a nonadmitted (master) policy. Both of these vary by country.

Exporter's packages are intended for an insured whose primary foreign exposure is exported products. An exporter's package is not designed to cover an insured that has fixed locations overseas. The policy fills in the gaps in the insured's domestic commercial general liability (CGL) policy with regard to product liability coverage. That is, it covers product liability suits arising from occurrences taking place in a foreign country when the injury or damage arises out of a product sold outside the United States. The policy may also cover injury or damage taking place in the United States if the suit is brought outside the United States. Exporter's package policies are designed for small to medium-sized companies. Besides product liability, these packages typically include general liability coverage for overseas travel, auto liability, and foreign voluntary workers compensation (FVWC) coverages. Additional coverage options include property coverage for salespersons' samples and property at trade shows, business income, ocean cargo, and various crime coverages (such as kidnap and ransom).

Export and/or import embargo indemnity is coverage of loss that occurs when import restrictions imposed by the government of the buyer's country or an export embargo in the seller's country frustrates an overseas contract. Similarly, should a contract include goods manufactured in a third country, substantial additional costs might be incurred if export restrictions were imposed in the subcontractor's country; or, in circumstances where subcontracted goods were being imported into the main contractor's country, an import embargo on such goods might be imposed. It is possible to cover losses incurred when contracts are frustrated in this way by means of an export/import embargo indemnity.

Exposure-in-residence theory is a legal theory, applicable in certain latent injury cases, holding that injury occurs continuously while the injurious substance is within the injured person's body.

Exposure in an insurance context refers to the state of being subject to loss because of some hazard or contingency. It is also used as a measure of the rating units or the premium base of a risk.

The exposure base is the basis to which rates are applied to determine premium. Exposures may be measured by payroll (as in workers compensation or general liability), receipts, sales, square footage, area, or man-hours (for general liability), per unit (as in automobile), or per $1,000 of value (as in property insurance).

Exposure rating is a method of rating, usually applied to excess of loss reinsurance, under which the rate is determined based on an analysis of the exposure inherent in the business to be covered and not on the loss experience the business has demonstrated in the past. The reinsurance underwriter can use both exposure rating and loss rating to determine the quoted price.

An exposure survey is the act of preparing an inventory of the risks faced by an organization. The first step in the risk management process is risk identification, and this is the process typically used for this step. This often includes such activities as interviews with management and operating personnel, physical inspections, financial statement reviews, process flowcharting, and contract reviews.