Two points with previous example is explanation (8)
I believe the answer is:
exegesis
'explanation' is the definition.
(exegesis is a kind of explanation)
'two points with previous example is' is the wordplay.
'two points' becomes 'es' (two compass points).
'with' means one lot of letters go next to another.
'previous' becomes 'ex' (prefix meaning former or onetime).
'example' becomes 'eg'.
'ex'+'eg'='exeg'
'es' after 'exeg' is 'exeges'.
'exeges'+'is'='EXEGESIS'
(Other definitions for exegesis that I've seen before include "Critical expounding of e.g. Bible" , "Critical explanation of, eg, scripture" , "critical description" , "Critical interpretation (of scripture)" , "Textual interpretation" .)