Insurance Glossary

OCCUPATIONAL DISEASE

An illness or abnormal condition resulting from factors associated with the workplace. Occupational diseases are covered under workers compensation insurance policies.

OCCURRENCE POLICY

An insurance policy that covers claims arising from incidents that occur during the policy period, even if the claim is reported years after the policy has expired.

OCEAN MARINE INSURANCE

Insurance coverage for vessels, cargo, and marine-related liabilities, protecting against risks such as collision, piracy, and jettisoning of cargo. War risks are typically excluded but may be purchased separately.

OPEN COMPETITION STATES

States in which insurers may implement rate changes without prior regulatory approval, subject to review and disapproval if rates are found to be unfair or discriminatory.

OPERATING EXPENSES

The costs required to maintain business operations, including insurance, rent, utilities, and property taxes, excluding financing-related expenses.

OPTIONS

Financial contracts that grant the right, but not the obligation, to buy or sell an asset at a predetermined price on or before a specified date.

ORDINANCE OR LAW COVERAGE

An endorsement to property insurance policies that covers additional costs required to rebuild or repair property in compliance with current building codes or laws.

ORDINARY LIFE INSURANCE

A form of permanent life insurance that provides coverage for the policyholder’s entire lifetime.

ORIGINAL EQUIPMENT MANUFACTURER PARTS (OEM)

Automobile replacement parts made by the vehicle’s manufacturer, commonly used in auto repairs to restore original condition.

OVER-THE-COUNTER (OTC)

Securities that are traded through dealer networks rather than on formal exchanges such as the New York Stock Exchange.