Life Insurance Glossary provided by LOMA's Glossary of Insurance and Financial Services Terms
OAS Act
OASDHI Act
OCC
Occupational Rating Classes
Established by insurance companies for use in underwriting disability income coverage, these classes categorize occupations according to the relative degree of risk.
Office of the Comptroller of the Currency (OCC)
In the United States, a bureau of the federal Department of the Treasury that is responsible for regulating national banks.
Office of the Superintendent of Financial Institutions (OSFI)
In Canada, a federal regulatory agency responsible for supervising all federally chartered, licensed, or registered banks, as well as insurance, trust, loan, and investment companies.
Office of the Superintendent of Insurance
In Canada, an administrative agency established by each province to enforce the province's insurance laws and regulations.
Office of Thrift Supervision (OTS)
In the United States, a bureau of the federal Department of the Treasury that is responsible for supervising all savings institutions that are insured by the Federal Deposit Insurance Corporation.
Offset
In the United States, a federal tax provision that allows an insurer to use the benefits paid under one type of health insurance coverage to reduce the benefits paid under another type of coverage. The purpose of the offset is to ensure that a disabled person does not receive an excessive total amount of benefits and to encourage the disabled person to return to work.
Old Age Security (OAS) Act
A Canadian federal law that provides a monthly pension to all persons who are age 65 and older and meet specified residency requirements.
Old Age, Survivors, Disability and Health Insurance (OASDHI) Act
A U.S. federal law that protects covered individuals from loss of income resulting from retirement, death, or disability. More commonly known as Social Security.
See Social Security.
On-Site Regulatory Examination
A tool that insurance regulators use to monitor the solvency or market conduct of insurers.
Open Agency
In the home service insurance distribution system, a sales territory that does not have an assigned agent because of agent promotion, transfer, or termination; usually serviced by a staff manager.
Open Contract
A contract that identifies the documents that constitute the contract between the parties, but the enumerated documents need not all be attached to the contract.
Contrast with closed contract.
Open-end Credit Transaction
A financial transaction in which credit is extended under an agreement in which (1) the creditor reasonably expects repeated transactions; (2) the creditor imposes a periodic finance charge on an outstanding unpaid balance; and (3) the amount of credit that may be extended to the debtor during the term of the agreement—up to any limit set by the creditor—generally is made available to the extent that any outstanding balance is repaid.
Open-ended HMO
A health maintenance organization (HMO) that provides medical expense benefits to participants who use a health care provider who is not a member of the HMO's network. However, the HMO uses financial incentives to encourage participants to use network providers. Also known as point of service (POS) plan.
Open Enrollment Period
In contributory group insurance plans, a short time span during which eligible people who did not choose to join the group insurance plan at the first opportunity are permitted to join by presenting only an application and without providing evidence of insurability.
See also eligibility period.
Open Group Valuation
An assessment of the value of a pension plan that takes into account the benefits of the current group of participants and hypothetical participants who may enter the plan during some limited future period. Also known as dynamic valuation.
Contrast with closed group valuation.
Open Panel HMO
A type of health maintenance organization (HMO) that allows any physician or health care provider who meets the HMO's specific standards to contract with the HMO to provide services to HMO members.
Contrast with closed panel HMO.
Operating Activities
Transactions that involve a company's major lines of business and that directly determine the company's net income.
Operating Budget
Operating Efficiency Ratios
See activity ratios.
Operating Expenses
The costs that a company incurs in conducting its normal business operations.For insurers, costs other than expenses for contractual benefits.
See also expense.
Operational Budget
A budget that includes part or all of a company's core business operations.
Operational Planning
The company process of determining how to accomplish specified tasks with available resources, given a company's strategic plan.
Opportunity Cost
For planning purposes, the benefit that is forfeited or given up in choosing one decision alternative over another.
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