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This glossary is arranged in alphabetical order. Click on a letter in left column or scroll down to search.

< E >

Effective Date:

The effective date is the date your insurance coverage begins. You are not covered prior to a policy's effective date, unless there is a temporary insurance agreement in place.

Employer-Sponsored Retirement Plan:

Is a tax-favoured retirement plan that is sponsored by an employer. Among the more common employer-sponsored retirement plans are group RRSP, simplified employee pension plans, and profit-sharing plans.


This is an amendment to your policy written especially to cover unique items just for you. An endorsement is also a change to your policy that is made during the policy's term. An endorsement is attached to your policy to modify the terms of the insurance contract.


This is the Life insurance payable to the policyholder, if living on the maturity date stated in the policy, or to a beneficiary if the insured dies before that date. For example, some Term to age 100 policies offer the option of taking the face amount of the policy as a cash payout at age 100 if the policyholder is still alive and paying all required income taxes on the amount received or leaving the policy to pay out upon death whereupon the payout is tax free.


The value of a person's ownership in real property or securities; the market value of a property or business, less all claims and liens upon it.

Errors and Omissions Insurance:

Insurance coverage purchased by the agent/broker, which provides protection against loss incurred by a client because of some negligent act, error, oversight, or omission by the agent/broker.

Estate Conservation:

Activities coordinated to provide for the orderly and cost-effective distribution of an individual's assets at the time of his or her death. Estate conservation often includes wills and trusts.

Evidence of Insurability:

Is a Statement providing information about your physical (medical) condition and other factors affecting your insurability for insurance. Increases to life insurance Disability, Critical Illness, and long term care insurance for you or your dependents may be subject to Evidence of Insurability. In group insurance, evidence of insurability is required only in specific situations, such as when a person fails to enrol during the open enrolment period, when a person applies for reinstatement after having previously withdrawn from the plan when receiving an overall maximum benefit, or when a person applies for excess amounts of group life or disability insurance.

Executive Bonus Plan:

The employer pays for a benefit that is owned by the executive. The bonus could take the form of cash, automobiles, life insurance, or other items of value to the executive.


This the person appointed to carry out certain duties under the last will of a deceased person. (The one who makes the will is called a testator.)

The deceased will have named the executor in his/her will, and the court confirms the appointment of that person. When the executor is confirmed by the court, the court then issues letters of probate in his/her favour. This person will collect the property, pay any debt, and distribute your property or assets according to your will. If the will does not name an executor, (the feminine form for executor is executrix.) then the person who is appointed by the court to administer the estate is called an administrator.


This is a clause that expressly eliminates a definite illness or activity from the coverage of an insurance contract or policy. The exclusion clause may be a general statement of terms covering all policy owners and/or insureds. Examples of general exclusions are suicide or suicide attempt, acts of war, or foreign travel. A specific exclusion may also be added to a contract as issue. Examples of specific exclusions are skydiving, scuba diving, automobile racing, and flying.


The term used to describe the relationship of premium to claims for a case, coverage or benefit for a stated time period. Experience rating is used in determining insurance renewal premiums.


The termination of a Term Life Insurance policy at the end of its period of coverage.

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