The Insurance Terms Glossary is divided alphabetically for ease of browsing. Select the alphabet letter that corresponds to the first letter of the word you would like to be informed about to open the appropriate heading.

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Glossary Terms ' O '

Occupational Hazards - Occupations which expose the insured to greater than normal physical danger by the very nature of the work in which the insured is engaged and the varying periods of absence from the occupation due to the disability that can be expected.

Occurrence - An accident including continuous or repeated exposure to substantially the same general harmful conditions that results in bodily injury or property damage during the period of an insurance policy.

Occurrence Policy - A liability insurance policy that covers claims arising out of occurrences that take place during the policy period regardless of when the claim is filed.

Ocean Marine Insurance - Coverage on all types of vessels including liabilities connected with them and on their cargoes.

Operating Ratio - The sum of expenses and losses expressed as a percent of earned premium.

Optionally Renewable Contract - A contract of health insurance in which the insurer reserves the right to terminate the coverage at any anniversary or in some cases at any premium due date but does not have the right to terminate coverage between such dates.

Ordinance or Law Insurance - Coverage designed to provide protection against financial loss for (1) the loss of value of an undamaged portion of the existing building which must be demolished and/or removed to conform with municipal ordinance code etc. (2) the cost of demolition of the undamaged portions of the building necessitated by the enforcement of building zoning or land use ordinance or law. (3) any increased expenses incurred to replace the building with one conforming to building laws or ordinances or to repair the damaged building so that it meets the specifications of current building laws or ordinances.

Ordinary Life Insurance - Life insurance usually issued in amounts of $1000 or more with premiums payable on an annual semi-annual quarterly or monthly basis. Compare Whole Life and Straight Life: The three terms are applied to the type of policy which continues during the whole of the insured's life and provides for the payment at death of an amount insured.

Other Car Insurance - Coverage designed to protect employees or executives of a company or any other person who is supplied a company vehicle but who does not own a his or her own vehicle therefore not having personal automobile coverage. The coverage is generally added by endorsement to the automobile policy of the company that furnishes the automobile giving protection while the named individual or a member of his family is driving a car borrowed from a third party (other than the vehicle named in the policy).

Over-the-Counter Market - A means of buying and selling securities that are not listed on a stock exchange. Negotiations are carried out by telephone or computer network.

Overhead Expense Insurance - A special form of health insurance designed to help offset overhead expenses such as office rent utilities employees' wages and auditors' fees incurred during total disability. The monthly payments during disability are not a fixed amount of indemnity as on regular disability polices but the amount of overhead expense actually incurred or a percentage thereof up to the limit specified in the policy.

Overhead Insurance - A type of short-term disability income contract that reimburses the insured person for specified fixed monthly expenses normal and customary in the operation and conduct of his/her business or office.

Overriding Commission (Overwrite) - A commission paid to general agents or agency managers in addition to the commission paid to the soliciting agent or broker.

Owner's or Contractor's Protective Liability Insurance - Coverage designed to provide for payment on behalf of the insured all damages the insured becomes legally obligated to pay due to bodily injury or property damage caused by an occurrence rising from (1) operations performed for the named insured by independent contractors (2) acts or omissions of the named insured in connection with his/her general supervision of such operations. This does not include maintenance and repair at premises owned by or rented to the named insured or structural alterations at such premises that do not involve changing the size of or moving buildings or other structures.