- Occupation class
- A group of occupations that present a similar risk to an insurance company. If all other factors are equal, people in the same occupation class will pay the same premium rates for health insurance.
- OCCURRENCE (Table: SCHEME_RATES)
- This is a multi-value field related to BANDING. The banding indicates which column of rates in UNIT_VALUES the system is to use, the occurrence which item within that rate. If the Matrix Retrieval Method is being used, this field has a different meaning. It will be the name of the data which runs along the X-axis of the matrix setup in the unit values screen, forming its columns. The item you type in will be the data fetched from the policy record to find the correct row in the matrix.
- Office of the Superintendent of Financial Institutions (OSFI)
- In Canada, the government office that administers the federal laws pertaining to the various financial institutions, including insurance companies.
- Office of the Superintendent of Insurance
- In Canada, a provincial executive agency that is responsible for administering the province's insurance laws and regulations.
- Offset
- A tax law provision that allows an insurer to use the amount paid for one type of tax to reduce another aspect of the company's tax liability.
- Offset approach
- A way of integrating benefits from a private defined benefit pension plan with benefits from a government plan. The benefit payable from the private plan is reduced by a specified percentage of the benefit received from the government plan.
- Old Age Security Act (OAS)
- Canadian legislation that provides a pension to virtually all citizens who are age 65 or older.
- Old Age, Survivors, Disability and Health Insurance Act (OASDHI)
- The legislation that created Social Security in the United States. See Social Security.
- Open contract
- A type of insurance contract used by fraternal benefit societies. Under this type of contract, the society's charter, constitution, and bylaws become a part of the insurance contract, and any amendments to them automatically become amendments to the insurance contract. No such amendment, however, can destroy or diminish benefits that the society is contractually obligated to pay. See also closed contract and fraternal benefit society.
- Open debit
- In a home service sales territory, a block of policy owners that does not have an assigned servicing agent.
- OPERATOR (Table: GENACCTRN)
- The initials of the operator responsible for this general accounting transaction. (The update may have been indirect via policy accounting.)
- OPTION (Table: REPORT)
- This is an indicator as to the type of information in the next 3 fields. e.g. 'S' - a sub-title on the screen; only the narrative is required. 'B' - leave a blank line (for display format) no other entries required. Any other character can be entered as an indicator of a report option - an ascending numerical count is the suggested standard.
- Option
- A choice that a policy owner can make when deciding how to apply settlements, dividends, or nonforfeiture values. See also dividend options, nonforfeiture options, and settlement options.
- Option A plan
- A plan used in universal life insurance in which the potential policy proceeds remain level. In an option A plan, the policy proceeds are equal to the policy's death benefit. Consequently, the net amount at risk is equal to the difference between the policy's death benefit and the policy's cash value. As the cash value increases, the net amount at risk decreases. Contrast to option B plan below.
- Option B plan
- A plan used in universal life insurance in which the potential policy proceeds increase. In an option B plan, the policy proceeds are equal to the death benefit plus the policy's cash value. Consequently, the net amount at risk is always equal to the death benefit of the policy. Contrast to option A plan above.
- Optionally renewable policy
- An individual health insurance policy that is renewable on a policy anniversary only if the insurer chooses to renew it. See also cancelable policy, conditionally renewable policy, guaranteed renewable policy, non-cancelable and guaranteed renewable policy, and non-cancelable policy.
- Ordinary insurance
- See individual insurance.
- Ordinary life insurance
- Life insurance which is available to individuals in relatively unrestricted maximum death benefit amounts, and premiums may be paid monthly or less frequently.
- Original age conversion
- The fact or the act of changing a term life insurance policy to a whole life policy at a premium rate based on the age of the insured at the time the term policy was purchased.
- ORIGINAL POLICY NUMBER (Table: GRP_POL)
- the original scheme policy number.
- ORIGINAL POLICY YEAR (Table: GRP_POL)
- The original scheme policy year.
- ORIGINATOR (Table: LETTERS_SENT)
- Who originated the transaction.
- Outliers
- Medicare patients whose illnesses are unique and whose conditions may not be classifiable under one of the diagnostic related groups.
- Outstanding premium
- In Canada, a premium that is due on or before the policy statement date but that has not been received by that date.
- Over-retained
- The situation in which an insurance or reinsurance company has accepted an amount of insurance which exceeds the company's normal capacity on a specific risk. Also referred to as overlined.
- Overinsurance
- An amount of insurance that is excessive in relation to the loss insured against.
- Overinsurance provision
- A provision in an individual health insurance policy specifying that, under certain circumstances, policy benefits will be reduced if the insured has more insurance than needed to cover medical expenses or if disability income would exceed the insured's predisability earnings. See also coordination of benefits (COB) clause.
- Overlapping territory
- Under the general agency system, a territory in which some portion of the territory is open to an agent other than the general agent, while the rest of the territory is the exclusive domain of the general agent. See also exclusive territory and nonexclusive territory.
- Overriding commission
- A commission earned by a field office manager that is based on the business produced by the agents in that office. An overriding commission may be earned each time an agent sells business or it may be based on the overall production of the field office. Also called the override.
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