Glossary

The expense ratio is the percentage of premium used to pay all of the costs of acquiring, writing, and servicing insurance and reinsurance.

Expense reserve refers to a liability item for expenses incurred but not paid.

The experience is the loss record of an insured or of a class of coverage.

An experience account is an account into which premiums are deposited, which is established as part of a finite risk insurance program.

Experience modification is the actual process by which the factor developed through experience rating is applied to the premium of the insured.

An experience modifier is a factor developed by measuring the difference between the insured's actual past experience and the expected or actual experience of the class.

Experience rating as respects workers compensation is the method in which the actual loss experience of the insured is compared to the loss experience that is normally expected by other risks in the insured's rating class.

Under a reinsurance agreement, the experience refund is that part of the profits that is returned to the cedent after recognition of contingency reserves, loss carryforward, and loss carryback provisions.

The experimental medical procedures exclusion found within the majority of physicians professional liability insurance policies precludes coverage for claims arising from the administration of experimental medical procedures.

An expert is an individual who has special training, skill, experiences, or knowledge so as to be qualified to render an authoritative opinion in a particular area of scientific, technical, or professional expertise.