Insurance Glossary

Insurance Gobbledygook Made Simple

Plain english explanations of insurance terms used by agents, companies and lawyers and found in your insurance policies.

EEffective date the date the insurance policy begins.Elimination periodthe number of days of care that you pay before your insurance plan picks up the benefits.Endorsementan addition to a policy that modifies its benefits.Endowment a cash value policy payable to the policyholder on the maturity date, if living, or to a beneficiary at the time of the insured’s death.Enrollment periodthe period during which individuals may enroll for an insurance policy, Medicare, HMO benefits.ERISAEmployee Retirement Income Security Act, a federal law that regulates employer-sponsored pension and insurance plans for employees.Evidence of insurability statement or proof of a person’s health, finances, lifestyle, habits, or job to the extent that they affect his or her acceptability for insurance.Exclusion a provision in an insurance policy that denies coverage for certain losses, persons, or property.Exclusionsconditions or procedures that are not covered. Every health care plan has its own list of exclusions and limitations. Some of the more common ones are experimental medications/treatments/procedures, sickness or injury as a result of war, attempted suicide, cosmetic surgery, etc.Experimental and investigational procedureshealth insurance coverage generally excludes medical treatments that are deemed to be unproven, ineffective, or non-standard. This includes surgical techniques and medicines not approved by the Food and Drug Administration. Sometimes such treatments may be available by traveling to another country, but these treatments would generally not be covered.Explanation of benefits (EOB) the insurance company’s explanation of its decision regarding your claim.Extended term insurance allows for the continuation of the original amount of the insurance with no further premium payments during a limited period of time.