Term used by a reinsurer to indicate that he accepts not only the risk as it is presented to him but also any variation that may exist in the original policy. The wording protects the ceding insurer in case an error has arisen in transmission of the facts about the risk.
Insurance Encyclopedia
Order
(1) A request for insurance received by an insurer. (2) A friendly society with branches.
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This may refer to – (a) the communication by a broker to an underwriter of a client’s acceptance of his quotation; or (b) the amount of the sum insured that is covered by a particular slip where more than one slip is used to arrange cover.
Order of payments
Refers to a provision that may be included in a D&O policy affording coverage for securities claims against the insured company. Under that type of policy, directors and officers may be concerned that their coverage will be diluted or exhausted by coverage for claims against the company, thereby leaving the directors and officers under-insured or uninsured. An order of payments provision generally states that directors and officers will have first priority to the insurance policy proceeds and the insurance company will, at the request of the insured company, postpone any payment of loss incurred by the entity until after all loss incurred by directors and officers has been paid.
Ordinance or law coverage
This insurance responds to property loss or damage necessitating repair, demolition, or rebuilding in accordance with current building codes.
Ordinary agency (Life Insurance)
An agency that only deals in ordinary life insurance.
Ordinary annual contributions
Term used in Practice Notes (IR12) to denote annual contributions payable to an occupational pension scheme by the employer on a common basis, e.g. a fixed amount or a fixed percentage of the payroll. Compare with special contributions.
Ordinary Bond
A Customs and Excuse Bond covering a single transactions, as opposed to a general bond.
Ordinary breakage
Breakage (not associated with any named perils) of fragile cargo which is regarded as inevitable during transit. It is generally excluded unless caused by the vessel or craft being stranded, sunk, burnt or in collision. The Replacement Clause deals with breakage of machinery.
Ordinary business
all long term, including life, business other than industrial business.
Ordinary Construction
A building in which the supporting walls are brick and the floors are wood joints, the inferior finish usually conceals space i which Fire can spread and with little protection of stair shafts.