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OBLIGEE

See Bond.

OCCUPANCY

The nature of the use of premises; description of the nature of the contents of premises.

OCCURRENCE

The commonly accepted definition: "An injurious exposure to conditions, which results, during the policy period, in bodily injury or property damage neither expected nor intended from the standpoint of the insured." This wording eliminates the necessity of pinpointing the exact time of the loss.

OCEAN ("WET") MARINE

That class of insurance covering ships, their equipment, cargoes and other liabilities. Often referred to as "Wet Marine" as opposed to "Inland Marine." See also Cargo Policy, General Average, Hull Insurance, Longshoremen’s and Harborworker’s Compensation, etc.

OFF PREMISES

Refers to insurance applying away from the premises described in the policy. Personal activities (liability), personal property (homeowners and inland marine) are examples of such coverage. Often referred to as "away from the premises."

OFFICERS AND DIRECTORS LIABILITY INSURANCE

See Directors and Officers Liability Insurance.

OFF-LINE

Not under control of the Central Processing Unit (CPU).

OMNIBUS CLAUSE

The term commonly used to refer to the section of the automobile policy which defines the word Insured wherever used in the policy. Originally the automobile policy covered only the person, persons or organization(s) specifically named in the policy, and a separate charge was made for each. Subsequently, when the National Standard Automobile Policy was adopted, the definition of insured was broadened to include his (or her) spouse, members of the insured’s family residing in his household, and any other person or organization operating the automobile with the expressed (or implied) permission of the named insured. "Implied Permission" means permission which would have been granted had the insured been present to give it. Insurance people refer to the Omnibus Clause, a term which you will not find in the policy. The concept, however, is contained in the section of the policy titled "Definition of Insured." The term is also used in Marine Insurance.

ONE-BANK HOLDING COMPANY

A separate corporation formed by a commercial bank for the purpose of transacting business related to its usual operations, such as the selling and servicing of insurance (among other services) which it is prohibited from doing by reason of terms of its charter and other banking regulations. It is a means of permitting the bank to expand and diversify its related services.

ON-LINE PROCESSING

The technique used when date requires some form of immediate processing. For example, when a member of a medical insurance plan is admitted to an emergency room, the patient’s membership number may be entered through a terminal to the main computer which, in a matter of seconds, can locate the member’s file and return a complete printout of his medical history and make it available to the emergency room staff. (Compare to Batch and Real Time Processing.)

NON-OWNERSHIP LIABILITY-AUTOMOBILE

The liability of persons or organizations by reason of the operation for their interest of automobiles which they do not own. For example, an employer who has salesmen who operate their own automobiles in pursuit of the company’s business may be held jointly or solely liable in the event of an accident during such pursuit. An Automobile Non-Ownership Liability Policy may be issued to cover the interest of the employer or organization for this exposure. (See also Named Non-Owner Policy and Hired Car Policy.)

OPEN LOT

See Standard Open Lot.

OPEN MARKET

See Voluntary Market.

OPEN POLICY

A policy having no expiration date but continuing in force until cancelled. There is generally an annual premium deposit (with company retention of the minimum) and the policy is written more or less on a "reporting form" basis with adjustments in premium made at arranged periodic intervals. Usually a marine form (e.g. Parcel Post, Marine Cargo) where values exposed to loss at any given time fluctuate. The Fidelity Bond has an expiration date and is also therefore an "open" form.

OPEN STOCK BURGLARY POLICY

(Also known as the Mercantile Open Stock Policy.) Policy covers loss by burglary of merchandise, furniture, fixtures and equipment from within the insured’s premises when such premises are not open for business, provided there are visible signs of forcible entry. Coverage is also provided for robbery of a watchman when the premises are not open for business. The policy provides, in addition, some protection for damage done to contents and/or building during the burglary if the insured is owner of the premises or responsible for such damage under the terms of his lease. This policy does not cover money, manuscripts, securities, records or accounts. Theft, shoplifting, inventory shortages, etc. are also excluded, but day or night robbery and theft may be included by endorsement for an additional premium. (See Forcible Entry definition.)

OPTICAL CHARACTER RECOGNITION (OCR)

OPTICAL CHARACTER RECOGNITION (OCR)

A computer operation which can "read" numbers and letters (typed, printed or handwritten)from a source document (anything that contains information needed for data processing) and converts them directly into electrical impulses for entry into the computer. This process eliminates the need for manual entry of data from terminal keyboard or key-punched cards. (See also Magnetic Ink Character Recognition--MICR).

ORAL BINDER

See Binder.

ORDINANCE

A law enacted by a municipality.

OTHER INSURANCE CLAUSE

A provision in the policy outlining the procedures to be followed in the event of a loss where (or when) other existing insurance may be applicable.

OUTPUT DEVICE

Any device which transfers processed data from computer storage and records it in whatever form is required (e.g. payroll, loss and claim summaries, account statements, printouts of any desired information, etc.)

OVERKILL

1) Accomplishing more than your job description requires. Incurs wrath of fellow bureaucrats.

2) The act of killing someone more than once.

OWNERS’ & CONTRACTORS’ PROTECTIVE LIABILITY

See Contractor’s Protective Liability.

OWNERS’, LANDLORDS’ AND TENANTS’ LIABILITY (O.L.&T.)

Liability arising out of the ownership, occupancy or use of real estate, or of operations in connection therewith, including maintenance of premises. The scope of protection under the O.L.&T. policy covers the insured for liability described above, but is broader in protection than appears at first glance. In addition to premises, the policy provides coverage for “all operations necessary or incidental thereto,” a phrase which extends the liability protection for the insured beyond the limits of the premises as defined to cover accidents occurring away from the premises providing they result from the insured’s regular operations. Even though this extension may include delivery and installation, there are the usual expected exclusions (see Completed Operations, Loading and Unloading) such as Liability assumed under Contract, Vehicles, Aircraft and New Construction or Demolition, among others.