A basis for calculating the insurer’s loss ratio. The claims cost estimated for a period is compared with the premiums earned for the period and expressed as a percentage thereof.
Insurance Encyclopedia
Earnest Money Bond
See: “Bond, Bid-bond.”
Earning Power for Loss
The present value of a person’s after tax income less in the case of death the amount of that income the person would have spent on himself if he had lived, A more complete definition would add the present value of the employee benefits lost and the cost of replacing services the person would have rendered his family.
Earnings
All wages from employment and net earnings from self-employment, whether or not taxable or covered.
Earnings cap
Sets a limit on how much of a person’s income can be used to calculate the contribution that can be paid to, and the benefits that can be paid by, tax approved pension schemes. Contribution limits are expressed as percentages of earnings (15 per cent for occupational scheme members) subject to the annually adjustable cap, £99,000 (2003/4). The cap affects class A members only.
Earnings insurance (Property Insurance)
Business interruption insurance without a coinsurance clause. This coverage is meant for smaller risks.
Earnings insurance coverage
A simplified form of insurance covering business income loss, limited to a set percentage of the policy’s total amount for recovery of proved loss for each 30-day period.
Earnings record
Chronological history of the amount a worker earns each year during his or her working lifetime. For Social Security, credits earned remain on an individual’s Social Security record even when changing jobs or during a period with no earnings.
Earnings related pension
See: STATE SECOND PENSION.
Earnings threshold
The total amount an individual and/or his employer may pay to the individual’s personal pension scheme every year, regardless of whether they have any earnings or how much they are. For 2003/4 the figure was £4,615. The threshold includes tax relief at basic rate. Individuals wishing to pay more have to justify their case by their age and earnings level.