Glossary
of Insurance Terms
OCCUPATIONAL DISEASE
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Abnormal condition or illness caused by factors
associated with the workplace. Like occupational injuries, this
is covered by workers compensation policies. (See Workers compensation)
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OCCURRENCE POLICY
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Insurance that pays claims arising out of incidents
that occur during the policy term, even if they are filed many
years later. (See Claims-made policy)
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OCEAN MARINE INSURANCE
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Coverage of all types of vessels and watercraft,
for property damage to the vessel and cargo, including such risks as
piracy and the jettisoning of cargo to save the property of others.
Coverage for marine-related liabilities. War is excluded from basic
policies, but can be bought back.
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OPEN COMPETITION STATES
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States where insurance companies can set new
rates without prior approval, although the state’s commissioner can
disallow them if they are not reasonable and adequate or are discriminatory.
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OPERATING EXPENSES
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The cost of maintaining
a business’s property, includes insurance, property taxes, utilities
and rent, but excludes income tax, depreciation and other financing
expenses.
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OPTIONS
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Contracts that allow, but do not oblige, the
buying or selling of property or assets at a certain date at a set price.
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ORDINANCE OR LAW COVERAGE
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Endorsement to a property policy, including
homeowners, that pays for the extra expense of rebuilding to comply
with ordinances or laws, often building codes, that did not exist when
the building was originally built. For example, a building severely
damaged in a hurricane may have to be elevated above the flood line
when it is rebuilt. This endorsement would cover part of the additional
cost.
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ORDINARY LIFE INSURANCE
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A life insurance
policy that remains in force for the policyholder’s lifetime.
It contrasts with term insurance, which only lasts for a specified
number of years but is renewable. (See Term insurance)
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ORIGINAL EQUIPMENT MANUFACTURER PARTS / OEM
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Sheet metal
auto parts made by the manufacturer of the vehicle. (See Generic auto parts)
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OVER-THE-COUNTER (OTC)
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Security that is not listed or traded on an
exchange such as the New York Stock Exchange. Business in over-the-counter
securities is conducted through dealers using electronic networks.
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