Click here to enter our contest! Close Watch a Video of Last Year's Winner
Benson Kearley IFG helps you understand...

The world of insurance can be quite hard to understand. We’re here to provide you with terms you can understand, give you advice and offer our help—all right at your fingertips.

Insurance Glossary

E

EAFE INDEX

The European, Australian, Far East index complied by Morgan, Stanley. It is a common benchmark for portfolios containing foreign equities.

EARNED INCOME

Any wages, salary, and income from employment.

EARNINGS RETENTION RATIO (plowback ratio)

Amount of money withheld from shareholders (not paid out as dividends) that the company reinvests. A high earnings retention ratio may decrease the amount of money an investor receives today in the form of dividends, but if the company can reinvest the money and earn a higher rate of return, it may result in an increase in the share value of the stock (price appreciation).

EARTHQUAKE

Rare phenomenon involving movements of the earth's crust that may be violent enough to cause damage to property or dwellings.

EFFECTIVE DATE

Date on which a transaction comes into force.

EFFICIENT FRONTIER

A graph with risk and return on the horizontal and vertical axis that illustrates the return characteristics of a portfolio given different weightings of its assets. The ideal portfolio lies on the upper line of the graph. Anything below the Efficient Frontier is inefficient, as a portfolio exists with either a higher return at the same level of risk, or lower risk at the same level of return. An investment advisor may help to identify which portfolios lie on the efficient frontier for an individual with a certain level of risk tolerance.

EFFICIENT MARKET HYPOTHESIS

A theory stating that prices of securities reflect all information available. It assumes individual investors are aware of the same events as the management of a corporation.

EMBEZZLEMENT

The fraudulent use of money or property, which has been entrusted to one's care.

EMPLOYERS LIABILITY INSURANCE 

Coverage against common law liability of an employer for accidents to employees, as distinguished from liability imposed by a workers' compensation law.

ENDORSEMENT

An amendment added to a written document, particularly an agreement between parties, such as an insurance policy, altering its provisions.

EQUITY

Value of a property in excess of claims or liens against it.

EXCLUSIONS

Risks, perils or properties defined in the policy as not covered.

EXTERIOR FINISH

Material used to build the outer walls of a dwelling. Also referred to as Exterior cladding.

EXPIRATION

The date upon which a policy will end.

EXPOSURE

Degree of hazard threatening a risk because of external or internal physical conditions.

EXTENDED COVERAGE (EC)

A common extension of property insurance beyond coverage for fire and lightning. Extended coverage adds insurance against loss by the perils of windstorm, hail, explosion, riot and riot attending a strike (civil commotion), aircraft damage, vehicle damage, smoke damage and volcanic eruption.

Watch a message from our President...

We are independent insurance agency leaders at the top of our game, with our feet planted firmly in our community. Click on the icon below to watch a video from our President, Stephen Kearley.

Get your FREE quote NOW!

Call us today to get your free quote or start a quote online. Anytime someone calls for or submits a a quote, we donate $10 to Southlake Regional Hospital—supporting healthcare excellence.

Contact us at 1.800.463.6503, Monday-Friday 8:30 a.m. to 5:00 p.m.

Start your HOME or AUTOMOBILE quote today!

Contact Us

For more information, or if you have questions, please give us a call at our toll-free number, at 800.463.6503. We’re open Monday to Friday, 8:30 a.m. to 5:00 p.m.

If you’re contacting us after our scheduled business hours, please contact us here.