Glossary

Extortion Coverage Form G was an Insurance Services Office, Inc. (ISO), form (CR 00 08) that insured against loss of money, securities, and other property surrendered as a result of a threat of harm to the insured, an employee, a relative, or invitee being held captive. This form has been replaced by the Extortion—Commercial Entities Endorsement (CR 04 03) to an ISO commercial crime policy. Broader coverage can often be obtained by purchasing a separate kidnap and ransom policy from an insurer specializing in this field.

The extortion expense coverage found in some professional liability technology policies covers the insured for reasonable and necessary expenses incurred as a result of a network extortion threat. This would include, for example, "ransom" payments to those thought to be behind the threat. All payments must be made with the insured's written consent.

Extracontractual damages are damages that are in addition to or outside of a contract of insurance. They are awarded in "bad faith" claims against insurance companies. They are a form of punitive damages, intended to punish extreme insurer conduct. Extracontractual damage awards most frequently arise from unfair claims handling practices (e.g., unjust denial of coverage or failure to settle a claim within policy limits).

Extracontractual obligations (ECO) are the obligations or requirements under a policy that the insurer pay certain losses or expenses not arising from the insuring agreement but from externally imposed obligations—for example, fines from a court or regulatory body. If ECOs are covered under a reinsurance agreement, the reinsurer pays punitive damages imposed on the insurer.

Extraterritorial coverage is the extension of state workers compensation law to provide benefits for workers hired in the state but injured while working in another state. There is usually a maximum placed on the amount of time an employee can spend outside the state of hire and still file a claim in that state. This term is also used in international insurance to denote coverage for work-related injuries occurring outside the boundaries of the country of hire.

Extra expense coverage is commercial property insurance that pays for additional costs in excess of normal operating expenses that an organization incurs to continue operations while its property is being repaired or replaced after having been damaged by a covered cause of loss. Extra expense coverage can be purchased in addition to or instead of business income coverage, depending on the needs of the organization. There are two Insurance Services Office, Inc. (ISO), commercial property forms that provide extra expense coverage: the Business Income and Extra Expense Coverage Form (CP 00 30) and the Extra Expense Coverage Form (CP 00 50).

Extra percentage tables refer to a form of substandard rating using mortality or morbidity tables for certain impaired health conditions.

An extra premium charge add to the premium for a class rate because of extra hazardous loss exposures.

Extremely hazardous substances refer to a list of chemicals maintained by the Environmental Protection Agency (EPA) that the EPA has identified as toxic and listed under the Superfund Amendments and Reauthorization Act (SARA) of 1986 Title III.

The "extrinsic facts" test is a guideline to establish whether an insurer owes a duty of defense to its insured. A defense is owed when the actual facts of a claim or loss match the provisions of the insurance policy, regardless of the language in which the claim is asserted against the insured.