Glossary

Outside directors are members of a corporate board of directors who are not employees of the corporation or otherwise affiliated with it. Outside directors usually have special qualifications and expertise that make them valuable in managing the company—hence their appointment to the company's board. In contrast to outside directors are inside directors, who are also employees of the corporation.

Outside directorship liability coverage refers to the coverage provided by directors and officers (D&O) liability policies for service on boards of directors outside the insured firm. Typically, such coverage only extends to service on the boards of nonprofit, rather than for-profit, companies. Outside directorship liability coverage is found within the majority of corporate D&O liability policies and is written on either a double excess or a triple excess basis.

Outstanding losses are losses that have been reported to the insurer but are still in the process of settlement. Paid losses plus outstanding losses equal incurred losses.

Outstanding loss reserves (OSLR) are those claims that have been reported but are not settled, and thus the final cost is not yet known.

Outstanding premiums are premiums due but not yet collected by the insurer.

Out of employment is a phrase describing injuries or illnesses that arise from risks that are peculiar to and characteristic of employment.

An over-line is an amount of insurance or reinsurance that exceeds an insurer's or reinsurer's normal capacity.

The overall operating ratio is a ratio to show the insurer's pre-income tax profitability, taking into account investment income. It includes total expenses as a percent of total income, before adjustments for federal taxes.

Overhead expense insurance refers to a form of health insurance that pays the overhead expenses of a business owner in the event of disability, such as rent, utilities, and employee salaries. Coverage under an overhead expense insurance policy usually does not include the salary, fee-drawing accounts, profits, or other remuneration for the insured, nor is coverage provided for a family member, for a member of the insured's profession who substitutes during the disability, or for anyone sharing business with the insured or anyone employed to perform the duties of the insured.

Overinsurance is an amount that is in excess of the insured object's fair or reasonable value.