Worker's Compensation Insurance

29 Earned Premium The portion of the policy premium paid by an insured that has been allocated to the insurance company’s loss experience, expenses, and profit year-to-date. Effective Date The starting date of an insurance policy; the date the policy goes into force. Endorsement “Endorsement” or “endorsement form”means a form, agreement or document that amends, adds to, subtracts from, supplements, or revises a policy form and is attached to a policy form to be effective. Exclusion A contractual provision in an insurance policy that denies or restricts coverage for certain perils, persons, property, or locations. Experience Modification A rating factor, which is expressed as a percentage that is used to adjust the workers’ compensation policy of qualifying employers. An experience modification compares the loss or claims history of the insured employer to all other employers in the same industry that are similar in size. Generally, an experience modification of less than 100% reflects better-than-average experience, and an experience modification of more than 100% reflects worse-than- average experience. Expiration Date The termination date of coverage as indicated on an insurance policy. First Party The policyholder (insured) in an insurance contract. Flat Cancellation Cancellation that takes place on the policy effective date. No premium charge is made; however, other charges (i.e. service) may apply.