The acceptance by an underwriter of a larger amount than originally agreed with the broker.
Insurance Encyclopedia
Overdone slips
A slip that is oversubscribed. The acceptances obtained by the broker exceed the amount of business available. It may be done intentionally by a broker seeking access to a wider market in the future. When it occurs the line written by each underwriter is reduced proportionately (short-closing).
Overdue Market
A market for the reinsurance of a marine insurance where a ship is overdue or has suffered a serious casualty which may result in a total loss, and thus a means for original underwriters of quantifying, and possibly cutting, their loss.
Overdue risk
An overdue ship. When a ship is overdue, the underwriter on risk may seek a reinsurance with other marine syndicates at a cost. Both the insurer and the reinsurer have access to the latest shipping intelligence provided by Lloyd’s.
Overflow
When water exceeds the boundaries of where it is being held, such as a tub, a basin, a lake.
Overfunding
Pension scheme with assets exceeding those required to meet liabilities. See ACTUARIAL SURPLUS.
Overhaul Operations
With regard to a fire, the methods of final extinguishment used by firefighters. This includes cleanup of debris. Progressive departments will only minimally disturb the contents to aid in fire cause determination.
Overhead
Charges of a fairly fixed nature which do not vary with the volume of activity. Light water rent and some taxes are overhead items.
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Fixed charges which do not vary proportionately with the amount of business done.
Overhead and profit
Costs involved in doing business such as office staff, rent, supplies, equipment job-related overhead is building permits, fees, inspections, utility hook-up charges, blueprints, surveys, and other such tasks. Profit is positive return on investment. Overhead and profit become an issue in replacement cost settlement of property losses.
Overhead Disability Insurance
A type of short-term disability income contract that reimburses the insured person for specified, fixed monthly expenses, normal and customary in the operation and conduct of his business or office.