A clause under many policies that gives the option of continuing the existing insurance for a period based on the contract’s cash value.
Insurance Encyclopedia
Extended term insurance option
See: extended term insurance .
Extended terms insurance
A credit insurance where the credit term exceeds 180 days.
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A form of Export Credit Insurance where credit is being granted in excess of 180 days.
Extended Wait
A form of reinsurance under which, after the ceding insurer has paid monthly benefits to the claimant for a given number of months under a Disability Insurance Contract, further benefits will be paid by the reinsurer.
Extended wait (Reinsurance)
A type of reinsurance wherein the reinsurer pays benefits under a disability contract after the ceding company has done so for some months.
Extended warranties (EWS)
Contracts which extend the manufacturer’s one year guarantee on domestic electrical goods (DEGs) and motor vehicles for between three and five years, but not general household insurance or service arrangements for central heating or alarm systems. The warranties may also cover additional risks during their term and the term of the original guarantee. Motor EWs are FSA regulated while retail sales of DEG EWs are usually exempt. All insurance-backed EWs are FSA regulated. See INSURED WARRANTY.
Extension
A clause in a policy which gives extra cover, e.g., in a Business Interruption Policy, cover in respect of loss through fire at a supplier’s premises, on in a cash policy, cover in respect of personal accident benefits to injured employees.
Extension clause
A clause in a policy that introduces additional cover.
Extension of benefits
See: Extended Benefits.
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A condition in the insurance policy which allows coverage to continue beyond the expiration date of the policy in the case of employees who are not actively at work or dependents who are hospitalized on that date. The extended coverage applies only where the employee or dependent is disabled as of that date and continues only until the employee returns to work or the dependent leaves the hospital.
Extension of benefits (Heath Insurance)
A policy condition that allows employees not currently working, or their hospitalized dependents, to extended coverage past the expiry date of the policy. Extended coverage only lasts until the employee returns to work or the dependent is discharged from the hospital.