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Obligor

A term used in surety bonds to refer to the individual or firm bound by an obligation. Also known as the principal.
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Commonly called “principal,” one bound by an obligation. Under a bond, strictly speaking, both the principal and the surety are obligers.
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The person who has engaged to perform some obligation, one who makes a bond; the bonding company.
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UK: The person, also called the principal, giving the bond to the obligee. In a performance bond it is the contractor, i.e. the party bound under the bond.

Obsolescence

Impairment of desirability and usefulness brought about by changes in public preference or by forces in addition to those which cause deterioration.
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When something is no longer useful or has any value.

Obsolete buildings clause

Apply a form of reinstatement insurance to buildings over 50 years old that cannot be rebuilt in a similar manner following a claim. The insurer agrees that if there is a significant loss, they will replace the ‘old’ with a new building or purchase an alternative building as a replacement. The sum insured should reflect this cost, and partial losses can be handled on a reinstatement or indemnity basis.

Obsolete parts clause

Clause applied by motor insurers when the subject-matter insured is a car no longer in production. The clause limits the liability of the own damage insurer for the cost of replacing any unobtainable part to the maker’s last list price plus the current cost of fitting.

Occupancy

In general, a condition affecting the desirability of property policies. Properties that are unoccupied are more susceptible to theft, vandalism, and other losses. A property that is unoccupied has furnishings, appliances etc., just no human occupants.
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The type and character of the use of property. It plays a very important part in computing rates in determining the acceptance or rejection of risks.

Occupation

Occupation means vocation, profession, trade or calling in which the insured is engaged for reward or profit. Where there is an exclusion relating to particular occupations in a health or accident policy this does not preclude the insured from carrying out acts or duties connected with the ordinary daily acts associated with occupations in general. Occasional acts do not amount to an occupation (Berliners v. Travelers Insurance Co. (1898)). See DISABILITY.