The activities of the insured and his employees in the conduct of a business.
Tag: RAW
Operative clause
defines the class and nature of business covered by a specific reinsurance treaty.
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The clause in an Insurance Policy that sets out the circumstances in which the Insurers are prepared to make claim payments.
Operative clause/insuring clause
clause Policy clause that (subject to conditions) sets out the insurer’s responsibilities in terms of losses or events in respect of which he will have to provide an indemnity or payout under a benefit policy.
Opportunity Cost
The cost of an action in terms of the alternatives foregone in carrying out that action.
Opra (Occupational Pensions Regulatory Authority)
Opra supervises a range of legal requirements affecting occupational pensions including stakeholder pensions. It also supervises employers who make employer or employee payments into personal pensions. Opra can take action where carelessness or negligence could put a scheme at risk. It collects the levy that funds Opra, OPAS, and the Pensions Ombudsman while also running the Pensions Registry. The sale and marketing of personal pensions and stakeholder pensions is supervised by the FSA. In 2005 Opra will be replaced by the Pensions Regulator. See PENSION PROTECTION FUND.
Option
Derivative financial instrument under which the payment of a sum of money gives a right, not an obligation, to buy or sell something at an agreed price on or before a specified date.
Option (Life Insurance)
The ways in which a policyholder can choose to receive dividends, death benefits, or nonforfeiture values.
Optional Benefits
See: “Elective Benefits.”
Optional modes of settlement (Life Insurance)
The ways in which a beneficiary can receive the pay out of a policy.
Optionally Renewable
A contract of health insurance in which the insurer reserves the right to terminate the coverage at any anniversary or, in some cases, at any premium due-date, but does not have the right to terminate coverage between such dates.