Dictionary

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Obligee

In bonds, the party to whom the principal makes the promise, and for whose protection the bond is being written.

Occupancy

Type and character of the use of property in question.

Occupational Accident

Impairment of health caused by accident related to conditions inherent in a person’s occupation or resulting from the nature of an employment.

Occupational Disease

Impairment of health caused by continued exposure to conditions inherent in a person’s occupation or a disease caused by or resulting from the nature of an employment.

Ocean Marine Insurance

Marine insurance designed to provide broad coverage for cargo and ships in transit over sea. Includes Cargo insurance, Hull insurance, and Liability coverage (Protection and Indemnity).

One-Year Term Dividend Option

A dividend option under which the insured has the company purchase one-year Term insurance with the dividend. For example, your dividend is $100, which you could have taken as cash. Instead, you have the insurer use the money to buy you an additional one year term policy at your current age. If you die in the term, your beneficiary will receive the proceeds of your Life policy PLUS the face amount of the one year term policy. At the end of the year, the term policy expires.

Optionally Renewable

A contract of Health insurance in which the insurer reserves the unrestricted right to terminate coverage at any anniversary or, in some cases, at any premium due date, but does not have the right to terminate coverage between such dates. Renewal is at the discretion of the insurer.

Ordinary Life Insurance

Life insurance other than Industrial or Group. Ordinary life may be Whole Life, Endowment or Term. The grace period on all Ordinary Life insurance is 30 days. The Mortality Table is used to calculate the rates and benefits payable for Ordinary Life insurance.

Original Age

The insured’s age when the policy was initially purchased. Often calculated based on the applicant’s closest birthday.

Other Insurance (P&C)

The existence of another contract covering the same interest and Perils. Sometimes called Pro-Rata Liability, because the insurers pay claims according to the proportion of premiums paid to each. (Remember, you can’t collect in total more than you lost.)