Do earthworms reproduce by laying eggs?

Answer 1

After two earthworms have mated, the clitellum secretes the cocoon which forms a ring around the worm. The worm then backs out of the ring, and as it does so, injects its own eggs and the other worm's sperm into it. As the worm slips out, the ends of the cocoon seal to form a vaguely lemon-shaped incubator or cocoon in which the embryonic worms develop