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Glossary -Global

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.
Occupation Occupation: Any meaningful work for which an employee is reasonably qualified in terms of training, education, and experience.
Occupational Injury Occupational Injury: An injury that occurs in the course of work or a health impairment caused by conditions in the work environment.
Occupational Safety and Health Act (OSHA) Occupational Safety and Health Act (OSHA): A federal law that sets national standards for health and safety conditions in the work place. The act also provides for compiling and reporting of statistics on occupational illnesses and injuries.
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.
Old Age, Survivors, Disability, and Health Insurance (OASDHI) Old Age, Survivors, Disability, and Health Insurance (OASDHI): Benefits provided under the US Social Security program.
Omnibus Budget Reconciliation Act (OBRA) of 1993 Omnibus Budget Reconciliation Act (OBRA) of 1993: Federal legislation that limits the amount of compensation that can be paid to employees covered by LTD plans funded through VEBA (voluntary employees' beneficiary association) trusts. Any such plan with participants earning more than $150,000 could lose its tax-exempt status.
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.
Other Income Sources Other Income Sources: Income and benefits other than the employer-provided benefit received by an employee who has been disabled, or by his or her family; e.g., payments from Social Security, workers' compensation, mandated state disability plans.
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.
Own Occupation Own Occupation: In LTD and STD plans, the job functions that an employee regularly performed before incurring a disability.
Own Occupation Period Own Occupation Period: The period during which employees will continue to receive LTD or STD benefits as long as they cannot perform their regular job; usually six months. See also any-occupation period.