Insurance which covers such things as rent, utilities and employee salaries when a business owner becomes disabled. The insurance benefit is generally not a fixed amount, but pays the amount of expenses actually incurred.
Insurance Encyclopedia
Overhead expense insurance (Health Insurance)
Disability insurance for business owners. In the event that the business owner becomes disabled, this insurance will pay rent, bills such as utilities, and salaries for the business employees.
Overhead Insurancebut
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/her business or office.
Overheating
Excessive heating. If a boiler or self-fired pressure vessel accidentally suffers a general deficiency of water while working, severe damage may be caused to the boiler shell, firebox, etc. The risk is insurable as a whole or, in the case of a multi-tubular boiler, limited if desired to the overheating of the tubes only. The cover is for ‘self damage’ only and is put into effect as an extension of the boiler and pressure plant policy.
Overlap
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.
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.