Glossary

Open rating is a pricing regulation approach associated with workers compensation premium costs in which state regulators allow insurers to issue policies using rates other than those established by the managing rating bureau. Types of variances include the use of rate deviations and the promulgation of rates by the insurers.

An open stock burglary policy is coverage insuring merchandise, furniture, fixtures, and equipment against loss by burglary or robbery while the premises are not open for business.

Operating cash flow is the underwriting cash flow plus investment income, and plus or minus other income statement cash flows.

Operating earnings refers to net income from continuing operations, excluding realized investment gains.

Operational capital is capital required to finance business activities.

Operational risk is the risk of human, process, system, or technological failure as well as risks from external events (i.e., event risk). It is the risk of loss from everything other than credit, market, and interest rate risks.

Operational risk financing securities (ORFS) refer to a debt or credit instrument designed to provide liquidity or income to offset changes in cash flows resulting from an occurrence relating to an entity's operations.

Operational risk management (ORM) is the application of the risk management process to operational risk. ORM focuses on a broader spectrum of risks than does traditional risk management, including process, system, or technical failure along with event risk. However, it treats a more limited set of risks than does enterprise risk management (ERM) in that it does not address credit, market, and interest rate risk.

Operator in an oil and gas context refers to the company that has the legal right, either by ownership or by virtue of a mineral lease, to produce oil and gas from a particular well. The operator serves as the overall manager and decision-maker of a drilling project. Operators typically have the largest financial stake in the project.

Operators extra expense (OEE) is a specialized policy available to oil or gas well operators that covers the cost of regaining control of a wild well. Coverage for pollution, stuck drill stem, evacuation expense, and care, custody, or control (CCC) exposures can be added by endorsement.