Occupational Accident

An accident arising out of or occurring in the course of one's employment and caused by hazards inherent in or related to it.

Occupational Safety and Health Act (OSHA)

A federal statute which establishes safety and health standards on a nationwide basis. The act is enforced by Labor Department safety inspectors and also provides for the record keeping of statistics relevant to work injuries and illnesses.


An event that results in an insured loss. In some lines of insurance, such as Liability, it is distinguished from accident in that the loss does not have to be sudden and fortuitous and can result from continuous or repeated exposure which results in bodily injury or property damage neither expected nor intended by the insured.


The probable frequency of incidence of a given occurrence in a statistical sample. It is expressed as a ratio to the probable number of nonoccurrences or as a decimal fraction of the total occurrences. For example, a probability of .25 equals odds of three to one against. A probability of .75 equals odds of three to one for.


The terms of a contract proposed by one party to another. In Property and Casualty Insurance, submitting an application to the company is usually considered an offer. In Life Insurance, the application plus the initial premium constitutes an offer.

Old Age, Survivors, Disability, and Health Insurance

The system of social insurance benefits for the aged, surviving dependents, and disabled workers set up by the Social Security Act of 1935, plus amendments and additions.

Omnibus Clause

An agreement in most Automobile Liability policies and some others that, by its definition of insured, extends the protection of the policy to others within the definition without the necessity of specifically naming them in the policy. An example would be a policy which covers the named insured and "those residing with him."

Open Rating

A system whereby a state allows an insurer to use rates without prior approval.

Other Insurance

The existence of other contracts covering the same interest and perils.

Other Insurance Clause

A provision found in almost every insurance policy except Life and sometimes Health stating what is to be done in case any other contract of insurance embraces the same property and/or hazards.

Outstanding Premiums

Premiums due but not yet collected. An allowance paid to a ceding company over and above the acquisition cost to allow for overhead expenses, often including a margin for profit.


A term used to describe the condition that exists when an insured has purchased coverage for more than the actual cash value or replacement cost of a subject of insurance. It is also used to describe a situation where so much insurance is in force as to constitute a moral or morale hazard, such as having so much Disability Income Insurance in force that it becomes profitable to be disabled.

Overlapping Insurance

Coverage from two or more policies or insurers which duplicates coverage of certain risks.


The amount of insurance or reinsurance exceeding an insurer's or reinsurer's normal capacity inclusive of automatic reinsurance facilities. A commitment by an insurer or reinsurer above and beyond normal facilities or capacities.

Overriding Commission

A commission which an agent or broker may receive on any business sold in his exclusive territory by subagents. Also sometimes called "overwriting" or "overriding."

Ownership of Expirations

An agreement by an insurer that certain information regarding the details of a policy, usually a Property or Liability form, will be revealed to no agent or broker other than the originating agent.