O

Obligatory Treaty. See Treaty Reinsurance.

Obligee. The person protected by a surety bond.

Obligor. The person providing a surety bond to an obligee; also known as a principal.

Occupational Safety and Health Act (OSHA). Legislation enacted by the federal government in 1970 establishing standard safety codes with the intention of reducing the number of employment-related injuries, illnesses and deaths.

Occurrence. An accident or loss.

Occurrence Policy. An insurance policy covering losses occurring during the policy period, without regard to when the claim is reported to the insurer.

Ocean Marine Insurance. A form of insurance that covers sea vessels and cargoes being carried on those vessels, as well as liabilities in connection with such activities.

Offset. The concept of allowing one party to net amounts due from another before making payments. Many contracts between insurers and reinsurers have offset clauses.

Omnibus Clause. A provision in automobile insurance policies that includes certain persons as insured without specifically naming them.

Operating Income. The profit or loss stemming from all operations, including underwriting and investments.

Operating Margin. Operating income divided by net premium.

Operating Ratio. An insurer's Combined Ratio minus the Investment Income Ratio.

Ordinary Life Insurance. A form of whole life insurance for which premiums are paid throughout the insured's lifetime. See Whole Life Insurance.

OSHA. See Occupational Safety and Health Act.

Outcomes Management. A health care term referring to the clinical outcome of a medical or surgical intervention or nonintervention. It is thought that, through a database of outcomes experience, caregivers will know better which treatment modalities result in consistently better outcomes for patients.

Out-of-Area Benefits. The coverage allowed to HMO members for emergency situations outside the prescribed geographic area of the HMO.

Override. A form of commission paid by an insurer to an intermediary, such as a managing general agent, for producing business.

Overseas Private Investment Corporation (OPIC). A government-sponsored organization that provides insurance to U.S. businesses for foreign investments against a variety of risks, including expropriation and war.