Glossary

Ordinary life refers to a type of whole life insurance contract arranged so that the premiums are payable as long as the insured lives.

Ordinary payroll limitation or exclusion endorsement is a business income coverage endorsement limiting to a specified number of days (such as 90 days), or eliminating altogether, coverage for payroll expense of employees other than executives, department managers, employees under contract, and other "important" employees. The 2012 edition of the standard ordinary Payroll Limitation or Exclusion (CP 15 10) endorsement was retitled, "Payroll Limitation or Exclusion." It limits or excludes coverage for payroll expense for any employee or category of employees, rather than just "ordinary" payroll.

Organizational documents are the legal documents used to incorporate or form a company. In the United States, they will include articles of incorporation and bylaws. In domiciles operating under English law, the same documents may be called "memorandum of association" and "articles of association," or, collectively, the "corporate charter."

Organizational risk includes the business, treasury, and pure risks of an organization (i.e., all exposures, hazards, and perils, whether traditionally the subject of insurance or not), which collectively create uncertainty as to the financial outcome of an enterprise.

Organizing is the process of creating a structure that makes optimum use of the resources required to successfully achieve goals. It is one of the four functions of the management process.

Original age refers to the age of an insured on the inception date of a life insurance policy.

Original age conversion refers to the conversion of a term life insurance policy to a permanent life insurance policy at a premium rate, based on the insured's age when the original term policy was purchased.

An original equipment manufacturer (OEM) is the company that originally designed or is an approved supplier of a manufactured vehicle, equipment, or component. In auto insurance, the term commonly refers to OEM replacement parts used to repair a damaged vehicle after a loss. OEM parts are distinguished from aftermarket, recycled, or reconditioned parts because they are designed to match the original part's fit, function, and specifications. Whether an insurer will pay for OEM parts depends on whether the loss is covered, policy language, applicable endorsements, state law, parts availability, and the age or condition of the vehicle.

The original gross premium (OGP) is the premium written for the entire risk. May include excess premium not subject to an excess of loss reinsurance agreement; therefore, is not necessarily the same as gross written premium (GWP).

Original insurer is the insurer that issues the policy to the insured. In reinsurance transactions, one party, the "reinsurer," in consideration of a premium paid to it, agrees to indemnify another party, the "reinsured," for part or all of the liability assumed by the reinsured under a policy of insurance that it has issued. The reinsured may also be referred to as the "original" or "primary" insurer or the "ceding company."