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Reference guide

Insurance Glossary

Plain-language definitions of common insurance terms across policies, coverage, and claims. Check your policy or plan documents for the terms that apply to you.

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Showing 18 of 18 matching terms

Terms beginning with O

Occurrence-based coverage

Business insurance
Liability coverage generally triggered by bodily injury, property damage, or another defined occurrence during the policy period.

Occurrence limit

Business insurance
The maximum a liability policy will pay for covered damages arising from one occurrence.
Also called: per occurrence limit

Occurrence policy

Business insurance
A liability policy designed around incidents that occur during the policy period, subject to its terms.

OEM parts coverage

Auto insurance
Optional coverage or policy wording addressing the use of original equipment manufacturer parts in covered vehicle repairs.
Also called: original parts coverage

Omnibus clause

Auto insurance
Policy language that may extend liability coverage to people using an insured vehicle with the named insured’s permission.
Also called: permissive use clause

Open enrollment

Health insurance
A scheduled period when people may enroll in or change certain health coverage.

Open enrollment period

Health insurance
The annual period when eligible people may enroll in or change health coverage without a qualifying event.

Open formulary

Health insurance
A drug list with fewer coverage restrictions than a closed formulary, subject to the plan’s rules.

Open perils policy

Home insurance
A policy form that covers direct physical loss unless the cause is specifically excluded.
Also called: all-risk policy

Ordinance or law coverage

Home insurance
Coverage that may help pay added rebuilding costs required by current building codes after a covered loss.
Also called: building code coverage

Other insurance clause

Business insurance
Policy language explaining how coverage applies when another policy may also cover the same loss.

Other structures coverage

Home insurance
Homeowners coverage for detached structures on the residence premises, such as a shed, fence, or detached garage.
Also called: Coverage B

Out-of-network

Health insurance
A provider or facility without a contract with a health plan, often resulting in different coverage or higher member costs.
Also called: non-network provider

Out-of-pocket maximum

Health insurance
The most a member may pay for covered health care that counts toward the plan’s limit during a plan period, under plan rules.
Also called: out-of-pocket limit

Outpatient care

Health insurance
Medical services received without being admitted for an overnight stay in a hospital or facility.
Also called: outpatient services

Overhead and profit

Claims
Amounts in a repair estimate for contractor supervision, coordination, and business profit when justified by the work.

Owner driven beneficiary change

Life insurance
A change to a beneficiary designation made by the policy or contract owner under the rights reserved in the contract.

Own risk and solvency assessment

General insurance
An insurer’s internal assessment of material risks, capital needs, and solvency position, often reported to regulators under applicable rules.
Also called: ORSA