Earned Premium
1) That portion of premium earned or charged for the period of time a policy remained effective. For example, an annual policy paid for in advance would be one twelfth "earned" at the end of the first full month of its term.
2) An amount calculated by taking earned premium reserve at beginning of
period plus premium written during period, less unearned premium reserve
at end of period.
3) Premium actually exposed to loss.

Earthquake Insurance
Insurance against damage by earthquake.

Effective Date
The date of inception of an insurance policy, or the date additional coverages become effective.

Employer's Liability Insurance
Coverage for legal liability imposed on an employer to pay damages to an employee injured by the employer's negligence. This is not Worker's Compensation Insurance where special acts of legislature set out specifically the relationship between the employer and employees in certain circumstances and formula by which awards in each case are computed.

Encumbrance
Mortgage, lien or other charge against a property.

Endorsement
An amendment added to a written document, particularly an agreement between parties, altering its provisions.

Equipment
Material for use on one machine, one vehicle, one unit. For example, a car comes "equipped" with five tires. Tires other than those on the car are
not "equipment" of the car. They are instead the dealer's "stock of tires." Equipment also includes contractor's equipment, e.g., backhoe, bulldozer.

Estate
1) In law, one of the various interests in land.
2) The net worth of an individual's worldly goods.

Estimate (Bid Function)
Costs a contractor anticipates for a project.

Estimated Premium
A tentative premium set in the anticipation of being approximately correct but which may be increased or decreased when the final premium calculation is made.

Estoppel
A bar created when someone by his action or lack of it indicates that he will not exercise a right he has. He stops himself from exercising his right later, e.g., if A owns a pen and stands by and watches B sell the pen to C, as if the pen belonged to B, then A cannot later reclaim the pen, arguing that it was his.

Exclusion
Risks, perils or properties defined in the policy as not covered.

Experience
Comparison of premiums earned with claims incurred for:
a) an individual insured b) group of insureds c) class of coverage.

Expiry
End of the policy period.

Explosion
A rupture of a pressure vessel of some kind due to excessive internal pressure (usually accompanied by a loud noise).

Exposure
The hazard threatening a risk because of external or internal physical conditions.

Extended Coverage Insurance
An endorsement that enlarges the coverage afforded by the primary policy. Coverages such as windstorm, hail, smoke, riot are extended coverages on a fire policy.

Extra Expense Insurance
A form of insurance policy covering the extra expense of an insured in carrying on a business following a loss by an insured peril.

F

Face Brick
Brick, chosen for its visual rather than its structural characteristics, used on wall's exposed surface.

Face of Policy
The front of the policy on which normally the name of the insurance company, the name of the insured, the amount of insurance and the type of insurance appear among many other items.

Fair Market Value
Price at which a buyer and seller, under no compulsion to buy or sell, will trade.

Fellow, Chartered Insurance Professional (F.C.I.P.)
A professional designation awarded to a Chartered Insurance Professional (C.I.P.) after the successful completion of several additional - university level - educational requirements as designated by the Insurance Institute of Canada.

Fire Damage
Damage caused by fire.

Fire Department Service Clause
A provision in a fire insurance policy agreeing to pay the cost of bringing a fire department to the location of the property insured in the event of a fire. It is valuable where the insured's property is not in a built-up area with its own fire department or where the risk is sufficiently large to require additional fire department services.

Fire Insurance
Coverage for losses from fire and lightning and also the resultant damage caused by smoke and water. Usually supplemented by Extended Coverage Insurance. See definition.

Fire Marshall
A public official involved in fire prevention and in investigation of fires particularly where arson is suspected.

Fire Resistant
A fire resistant building or article is generally designed to resist certain higher heat temperatures for a certain period of time. It has a lesser degree of resistance to fire and ranks slightly more hazardous than "fireproof."

Fixed Assets
Tangible long-term assets such as land, building, furniture, fixtures, machinery, equipment etc. held for use rather than for sale.

Fixtures
Anything that is attached to real property is known as a "fixture." Fixtures when permanently attached to real property become part of the real property. Tenant's fixtures are fixtures of a removable nature and are the responsibility of the tenant for insurance purposes. Whether a fixture is a tenant's fixture and movable or a landlord's fixture and immovable is frequently determined by the purpose of the fixture.

Flat Cancellation
The cancellation of a policy as of the effective date with all paid premium refunded.

Fleet Policy
In automobile insurance, this is a policy insuring a number of cars for one owner. In marine insurance, a policy insuring a number of ships for one owner.

Floater Policy
A policy covering the same risk at a number of perhaps unspecified locations possibly over a wide area (even worldwide); usually includes goods being frequently moved from one location to another, e.g., Fur Floater, Jewelry Floater, Contractors' Equipment Floater, etc.

Forgery
1) The illegal signing of another's name to a document, such as, a cheque.
2) Falsely making or altering a written instrument.

Frame
Refers to the construction of a building built of lumber.

Fraud
1) Methods used to deceive to cause unwarranted favorable decision for one's own benefit.
2) Deliberate misrepresentation or misstatement.
3) Concealment of facts which should at the time be made known.

Fraudulent
Dishonest; based on or obtained by fraud.

Fraudulent Misrepresentation
A false statement made knowing it to be false and intending another to act on it to his detriment, or made carelessly or recklessly without regard to whether it is true or false.

In insurance it is most frequently found in the intentional misrepresentation of a risk to obtain insurance or in proof of loss after the loss occurs.

Free on Board (F.O.B.)
When goods are shipped F.O.B., the shipper is responsible only until the goods have been placed on board the vessel or freight car or truck or other means of transport. After that the risk belongs to the consignee.