Most policies are issued for terms of one year renewable annually. Wherever the first period of insurance is longer than a year there is ‘odd time’ for which a pro rata charge is made.
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A period added to a calendar year for the purpose of making the renewal date of an insurance the date required by the insured.
Insurance Encyclopedia
Odds
The likely chance that a particular incidence will occur within a statistical sample. This can be expressed as a decimal fraction of total occurrences or as a ratio to the likely number of nonoccurences.
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The probable frequency of incidence of a given occurrence in a statistical sample. It is expressed as a ratio to the probable number of non-occurrences or as a decimal fraction of the total occurrences. For example, a probability of .25 equals odds to three to one against. A probability of .75 equals odd to three tone for.
Off Balance Sheet
Resources and transactions that do not show on the balance sheet. It involves financing other than by equity or debt. It occurs in a variety of circumstances notably: (a) where a financial institution provides an operating lease that makes a fixed asset available to the firm in return for regular rental payments. The use of the asset is acquired but no capital expenditure has taken place and so does not appear on the balance sheet; (b) where a company securitises available assets and markets them to investors through a special purpose vehicle in the form of bonds secured on the underlying assets. It transfers the assets to the SPV but retains use of them as income generators. They come off the balance sheet’ to improve the return on investment and other financial ratios. See SECURITISATION.
Off Premises
A clause in a property insurance extending coverage away from the premises described in the policy. The amount of coverage away from the premises is usually restricted to a percentage of the total coverage on the premises, e.g., 10%.
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A clause used to provide Insurance protection on personal property covered while it is away from the premises.
Off premises (Property Insurance)
A property insurance clause that extends coverage beyond the location detailed in the policy. This coverage is usually only a percentage of the total coverage.
Off premises cover
Commercial property policies commonly establish a small coverage limit that applies to property temporarily away from the insured’s place of business.
Off Risk
An insurer is said to be off risk when an insurance has been terminated.
Off Slip
A Signing slip, copies from an original slip, used to sign risks off open covers, open slips and treaty reinsurance contracts.
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A slip used for the noting of further items arising out of the original slip.
Off-Line
Describes an airline that sells in a market to which it does not operate. An Off-Line carrier will use another operator to link with its network.
Off-Shore Oil/Gas Units Policy
Specialized insurance policies are designed to cover units which are employed in connection with either exploration or for commercial production of oil/gas. The comprehensive policy covers drilling and production platforms, operations at site and also the transport of plant and equipment to the drilling sites.