The parallel payments that occur when, following the pensioner’s death within the guaranteed pensions period, the payment of the pension runs concurrently for a time with a dependant’s pension.
Insurance Encyclopedia
Overlapping Insurance
Coverage from two or more policies or insurers which duplicates coverage of certain risks. Also, See Also: “Concurrent Insurance.”
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Insurance from at least two insurers that duplicates the coverage of some risks.
Overlapping policies
See: Non-Concurrent Policies.
Overlie
The amount of insurance or reinsurance that exceeds the insurer or reinsurer’s usual capacity. This term can also refer to an insurer or reinsurer’s commitment over and above the usual capacity.
Overline
An inadvertent reinsurance acceptance that results in a reinsurer committing more capacity on a single risk than its intended exposure.
Overriding Commission
REINSURANCE: 1) In reinsurance or retrocession business (typically proportional treaties) an allowance paid to the ceding company over and above the actual acquisition and related cost to produce and underwrite the original business.
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UK: 1. An additional commission payable to particular intermediaries who introduce a large volume of profitable business to the insurer. 2. Discount granted by a reinsurer to an intermediary or cedant to cover the cedant’s overhead expenses. To prevent a ceding office from writing business and reinsuring 100 per cent as a full-time activity for the sake of the underwriting commission, established reinsurers usually insist that the cedant retains a reasonable proportion of the business for their own account.
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A commission paid to an agent or broker on business sold by subagents in his or her territory. This term can also refer to an amount paid to a ceding company in addition to the acquisition cost to compensate for overhead expenses.
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A commission that is paid by a reinsurer to the reassured to cover the latter’s overheads in administering the reinsurance.
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UK: an allowance paid to a ceding company over and above the acquisition cost to allow for additional expenses.
Overriding of implied terms rule
A rule of construction to the effect that where there is a contradiction between express and implied terms the express words will prevail.
Overseas deposits
Deposits required under local legislation to be made by insurers in overseas countries for the protection of locally based policyholders.
Overseas investment insurance
The ECGD provides political risks cover against expropriation, war and restrictions on remittances. Breach of contract cover is also considered case by case. Cover protects investors in terms of equity in, or loans to, foreign enterprises. Bank portfolio loans cover is also available to banks in support of bank lending to overseas projects where there is no UK sponsor or UK export. The initial duration of ECGD cover is 15 years.
Overseas Medical Policy
The Policy covers payment of expenses for medical treatment taken by the insured person outside India, as a Direct result of bodily injury caused or sickness contracted whilst on overseas travel. See Also: “Health Insurance, Overseas Mediclaim Policy.”