Life Insurance and Life Settlement Terms - O
Option A Plan
A plan used in universal term life insurance in which the latent policy proceeds remain level. In a choice a plan, the policy proceeds are equal to the policy's death benefit.
Option B Plan
A plan used in universal term life insurance in which the latent 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 peril is always equal to the death benefit of the policy.
Original Age Conversion
The conversion of a term life insurance policy to an entire life policy at a premium rate based on the age of the insured at the time the term policy was bought.
Occupational Disease
Abnormal condition or illness caused by factors allied with the workplace. Like occupational injuries, this is covered by workers compensation policies.
Occurrence Policy
Insurance that pays claims arising out of incidents that happen during the policy term, even if they are filed many years later.
Ocean Marine Insurance
Coverage of all kinds of vessels and watercraft, for property damage to the vessel and cargo, including risks like piracy and the jettisoning of cargo to save the property of others.
Open Competition States
States where insurance concern may set new rates without prior approval, although the state’s commissioner may not allow them if they are not reasonable and adequate or are discriminatory.
Operating Expenses
The cost of maintaining a business’s property, comprises insurance, property taxes, utilities and rent, but excludes income tax, depreciation and other financing expenses.
Options
Contracts that let, but do not oblige, the buying or selling of property or assets at a certain date at a set price.
Ordinance Or Law Coverage
Endorsement to a property policy, including homeowners, that pays for the further expense of rebuilding to comply with ordinances or laws, frequently building codes that did not survive when the building was originally built.
Ordinary Life Insurance
A life insurance policy that remains in effect for the policyholder’s life span.
