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Glossary - Insurance

Glossary

Word Definition
Obligatory Treaty Obligatory Treaty: See Treaty Reinsurance.
Obligee Obligee: The person protected by a surety bond.
Obligor Obligor: The person providing a surety bond to an obligee; also known as a principal.
Occupational Safety and Health Act (OSHA) Occupational Safety and Health Act (OSHA): Legislation enacted by the federal government in 1970 establishing standard safety codes with the intention of reducing the number of employment-related injuries, illnesses and deaths.
Occurrence Occurrence: An accident or loss.
Occurrence Policy Occurrence Policy: An insurance policy covering losses occurring during the policy period, without regard to when the claim is reported to the insurer.
Ocean Marine Insurance Ocean Marine Insurance: A form of insurance that covers sea vessels and cargoes being carried on those vessels, as well as liabilities in connection with such activities.
Offset Offset: The concept of allowing one party to net amounts due from another before making payments. Many contracts between insurers and reinsurers have offset clauses.
Omnibus Clause Omnibus Clause: A provision in automobile insurance policies that includes certain persons as insured without specifically naming them.
Operating Income Operating Income: The profit or loss stemming from all operations, including underwriting and investments.
Operating Margin Operating Margin: Operating income divided by net premium.
Operating Ratio Operating Ratio: An insurer's Combined Ratio minus the Investment Income Ratio.
Ordinary Life Insurance Ordinary Life Insurance: A form of whole life insurance for which premiums are paid throughout the insured's lifetime. See Whole Life Insurance.
OSHA OSHA: See Occupational Safety and Health Act.
Outcomes Management Outcomes Management: A health care term referring to the clinical outcome of a medical or surgical intervention or nonintervention. It is thought that, through a database of outcomes experience, caregivers will know better which treatment modalities result in consistently better outcomes for patients.
Out-of-Area Benefits Out-of-Area Benefits: The coverage allowed to HMO members for emergency situations outside the prescribed geographic area of the HMO.
Override Override: A form of commission paid by an insurer to an intermediary, such as a managing general agent, for producing business.
Overseas Private Investment Corporation (OPIC) Overseas Private Investment Corporation (OPIC): A government-sponsored organization that provides insurance to U.S. businesses for foreign investments against a variety of risks, including expropriation and war.