Glossary

Educators legal liability (ELL) insurance is designed to cover a broad range of nonbodily injury/nonproperty damage liability claims made against the administrators, employees, and staff members of both schools and colleges. ELL, which is also known as "school board legal liability insurance," is a hybrid of traditional directors and officers (D&O) and errors and omissions (E&O) coverages. Typical claims covered by ELL include wrongful termination, wrongful dismissal, failure to grant tenure, and negligent counseling.

An EEO-1 Report is a survey form that requires employers to designate employees into five major race/ethnic designations used by the Equal Employment Opportunity Commission (EEOC). Mandated under Title VII of the Civil Rights Act of 1964 and amended by the Equal Employment Opportunity Act of 1972, it is a requirement of employers with 100 or more employees and employers that are government contractors with more than 50 employees. The EEOC designations in the form, which is due before September 30 each year, are white (not of Hispanic origin), black (not of Hispanic origin), Hispanic, Asian or Pacific Islander, and American Indian or Alaskan Native.

The effective date refers to when an insurance binder or policy becomes effective and from which time protection is provided.

The sum of federal and state taxes applicable to an insured's income, taking into account losses carried forward.

Efficacy insurance guarantees the owner's debt service if the insured project cannot perform at the anticipated capacity due to deficiencies in the system's design, materials, or construction. The policy provides the funds required to pay the debt service costs and may be modified to reimburse the insured for capital expended so that the project may be brought up to the expected performance level. The most common use of efficacy insurance is on energy-related construction projects, such as geothermal or hydroelectric plants.

Election refers to the choice a captive insurance company makes regarding how it will be taxed. For offshore captives there is an opportunity to pay US income taxes directly, rather than have the tax burden fall on its shareholders. There are various types of elections, including: "B," "C," and "D" elections.

An election window is the period during which an insured under a claims-made policy may purchase an extended reporting period (ERP), following expiration or cancellation of the policy. Election windows are usually a minimum of 10 days and in some instances as long as 90 days.

Elective benefits refer to disability income policies that allow the insured the option to take a specified sum for certain minor injuries instead of receiving the disability benefit. A schedule in the policy specifies the elective benefits available.

The electrical damage or injury exclusion is an exclusion contained in most property insurance policies eliminating coverage for damage to electrical devices caused by artificially generated currents, except for ensuing fire or explosion. Coverage for this exposure is available under an equipment breakdown policy.

Electronic commerce means the conducting of financial transactions or business transactions, including the buying, selling, and advertising products or services, over the Internet.