In Lloyd’s practice it is common for a broker to obtain subscriptions from underwriters for more than 100 per cent for a proposed insurance. The share of each syndicate in the insurance is then reduced proportionately.
Insurance Encyclopedia
Over the Counter Selling
A non-agency system of selling Insurance in which the insured obtains his Insurance by going to the Insurance Company and purchasing it.
Over-age additional premium
Additional premium on an open cover applied to a cargo which is carried by a vessel over 15 years old or which is outside the scope of the classification clause. It may also be applied for breach of navigational warranties (Institute Warranties where the ship is over 15 years.
Over-insurance
Insuring property for more than its actual value. It can be inadvertent or fraudulent. The penalties for under-insurance can cause the insured to over insure but the use of declaration policies enables insureds with fluctuating sums insured to overcome the problem.
Over-Line
The amount of insurance or reinsurance that exceeds the insurer’s or reinsurer’s normal capacity. This is inclusive of automatic reinsurance facilities.
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An amount of insurance or reinsurance that exceeds the normal capacity of the insurer or reinsurer after allowing for automatic reinsurance facilities. An insurer who finds himself with more risk than he considers it prudent to bear is said to be over lined.
Over-Riding Commission
Additional commission paid by a reinsurer to an insurer ceding proportional business, as a contribution towards expenses. The term is often used on primary business written through agents or brokers and refers to any addition to basic commission rates either for volume or profitable business.
Over-the-counter (OTC) derivatives
A derivative, sold by a financial intermediary, tailored to particular risk financing needs rather than being exchangedtraded. I-Wex OTC Weather Risk Market allows ‘open access’ enabling a company to submit all details, barring price, of the weather risk they seek to hedge. Others search the database with a view to making offers.
Over-the-counter drugs
Drugs that may be purchased without a prescription from a medical professional.
Overage
(1) Additional premium payable on a Marine Insurance Open cover or policy when the insured goods are carried on a vessel which does not come within the scope of the Institute Classification Clause, usually because it is too old. (2) The excess amount of a liquid cargo which weighs more when landed than the weight reported when shipped.
Overage insurance
Health insurance issued to an insured over the age of 65, which is the usual limit.