- Earned Premium
That portion of the premium for which policy protection has already been given. For example, if you buy a one year Health policy for a premium of $1,200 and the insurer cancels you exactly six months later, they are entitled to keep $600 (the earned premium), but they must also refund you $600, which is called the “unearned” premium. If they covered you for the entire year, all the premium would be earned. This concept also applies to P&C insurance, but not to Life insurance, where all premiums are considered to be fully “earned” upon payment.
- Earnest Money Deposit
A deposit made by the potential home buyer to show that he or she is serious about buying the house.
A right of way giving persons other than the owner access to or over a property.
- Easement Appurtenant
An easement that passes with the land on conveyance.
- Easement by Implication
An easement that arises when the parties’ actions imply that they intend to create an easement.
- Easement by Necessity
An easement allowed by law as necessary for the full enjoyment of a parcel of real estate; for example, a right of ingress and egress over a grantor’s land.
- Easement by Prescription
An easement acquired by continuous, open, uninterrupted, exclusive, and adverse use of the property for a certain number of years, which varies from state to state.
- Easement in Gross
An easement that is not created for the benefit of any land owned by the owner of the easement but that attaches personally to the easement owner; for example, a utility easement.
- Economic Life
The period of time during which a structure may reasonably be expected to perform the functions for which it was designed or intended.
- Economic Obsolescence
See external obsolescence.