Resources and transactions that do not show on the balance sheet. It involves financing other than by equity or debt. It occurs in a variety of circumstances notably: (a) where a financial institution provides an operating lease that makes a fixed asset available to the firm in return for regular rental payments. The use of the asset is acquired but no capital expenditure has taken place and so does not appear on the balance sheet; (b) where a company securitises available assets and markets them to investors through a special purpose vehicle in the form of bonds secured on the underlying assets. It transfers the assets to the SPV but retains use of them as income generators. They come off the balance sheet’ to improve the return on investment and other financial ratios. See SECURITISATION.
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Off Premises
A clause in a property insurance extending coverage away from the premises described in the policy. The amount of coverage away from the premises is usually restricted to a percentage of the total coverage on the premises, e.g., 10%.
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A clause used to provide Insurance protection on personal property covered while it is away from the premises.
Off premises (Property Insurance)
A property insurance clause that extends coverage beyond the location detailed in the policy. This coverage is usually only a percentage of the total coverage.
Off premises cover
Commercial property policies commonly establish a small coverage limit that applies to property temporarily away from the insured’s place of business.
Off Risk
An insurer is said to be off risk when an insurance has been terminated.
Off Slip
A Signing slip, copies from an original slip, used to sign risks off open covers, open slips and treaty reinsurance contracts.
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A slip used for the noting of further items arising out of the original slip.
Off-Line
Describes an airline that sells in a market to which it does not operate. An Off-Line carrier will use another operator to link with its network.
Off-Shore Oil/Gas Units Policy
Specialized insurance policies are designed to cover units which are employed in connection with either exploration or for commercial production of oil/gas. The comprehensive policy covers drilling and production platforms, operations at site and also the transport of plant and equipment to the drilling sites.
Offer
The conditions of a contract offered by one party to the other. In life insurance, the initial premium plus the completed application is considered an offer. In property insurance, just the application is considered the offer.
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The communication of the contract terms by one party to another.
Offer and Acceptance
An element of the Insurance contract. See Also: “Insurance Contract, Essential Elements.”