Glossary

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.

Express authority in an insurance context stipulates the rights and powers of an agent explicitly provided in the agency contract.

Expropriation is the nationalization or confiscation by a host country government of a multinational's assets (e.g., plant, inventory, or equipment). If compensation is offered at all, it is usually far below fair market value.

Extended benefits under a health insurance plan are those that continue or become payable after the termination of coverage from a plan or insurance policy—for example, a hospitalization that continues after coverage would normally cease.

An extended coverage endorsement to a standard fire policy adds coverage for the following perils: windstorm, hail, explosion (except of steam boilers), riot, civil commotion, aircraft, vehicles, and smoke. The extended coverage perils are now included in a standard commercial property policy without the need for a separate endorsement.

The extended discovery period (EDP) is a provision of coverage in claims-made policies for claims brought against the insured following cancellation of the policy if the event(s) that caused the damage or injury occurred prior to the policy's cancellation.

An extended discovery provision is a clause that allows an insured to report (and ultimately receive coverage for) claims that are made against it after the expiration of a claims-made policy period.

An extended period of indemnity endorsement or option adds coverage under a business interruption policy for loss of income suffered during a specified period of time (e.g., 30, 60, or 90 days) after the damaged property has been repaired. A standard business income coverage form contains both an extended business income provision and an extended period of indemnity optional coverage. The extended business income provision grants coverage for up to 60 days beyond the date when repairs are, or should be, complete. The extended period of indemnity option, if selected, allows that 60-day period to be increased.

The extended reporting period (ERP) is the designated time period after a claims-made policy has expired during which a claim may be made and coverage triggered as if the claim had been made during the policy period.