Additional premium on an open cover applied to a cargo which is carried by a vessel over 15 years old or which is outside the scope of the classification clause. It may also be applied for breach of navigational warranties (Institute Warranties where the ship is over 15 years.
Insurance Encyclopedia
Over-insurance
Insuring property for more than its actual value. It can be inadvertent or fraudulent. The penalties for under-insurance can cause the insured to over insure but the use of declaration policies enables insureds with fluctuating sums insured to overcome the problem.
Over-Line
The amount of insurance or reinsurance that exceeds the insurer’s or reinsurer’s normal capacity. This is inclusive of automatic reinsurance facilities.
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An amount of insurance or reinsurance that exceeds the normal capacity of the insurer or reinsurer after allowing for automatic reinsurance facilities. An insurer who finds himself with more risk than he considers it prudent to bear is said to be over lined.
Over-Riding Commission
Additional commission paid by a reinsurer to an insurer ceding proportional business, as a contribution towards expenses. The term is often used on primary business written through agents or brokers and refers to any addition to basic commission rates either for volume or profitable business.
Over-the-counter (OTC) derivatives
A derivative, sold by a financial intermediary, tailored to particular risk financing needs rather than being exchangedtraded. I-Wex OTC Weather Risk Market allows ‘open access’ enabling a company to submit all details, barring price, of the weather risk they seek to hedge. Others search the database with a view to making offers.
Over-the-counter drugs
Drugs that may be purchased without a prescription from a medical professional.