Insurance Handbook - Alaska Department of Community and ...

of an insurance or an annuity contract if
the contract lapses. In the United States,
the typical nonforfeiture options for life
insurance are the cash payment option, the
extended term insurance option and the reduced
paid-up insurance option. (See Cash
payment option; Cash surrender value;
Extended term insurance option; Reduced
paid-up insurance option)
NONFORFEITURE VALUES
The benefits, as printed in a life insurance
policy, that the insurance guarantees to the
insured if the insured stops paying premiums.
NOTICE OF LOSS
A written notice required by insurance
companies immediately after an accident
or other loss. Part of the standard provisions
defining a policyholder’s responsibilities
after a loss.
NUCLEAR INSURANCE
Covers operators of nuclear reactors and
other facilities for liability and property
damage in the case of a nuclear accident
and involves both private insurers and the
federal government.
NURSING HOME INSURANCE
A form of long-term care policy that covers
a policyholder’s stay in a nursing facility.
O
OCCUPATIONAL DISEASE
Abnormal condition or illness caused by
factors associated with the workplace. Like
occupational injuries, this is covered by
workers compensation policies. (See Workers
compensation)
OCCURRENCE POLICY
Insurance that pays claims arising out of
incidents that occur during the policy term,
Glossary
even if they are filed many years later. (See
Claims made policy)
OCEAN MARINE INSURANCE
Coverage of all types of vessels and watercraft,
for property damage to the vessel and
cargo, including such risks as piracy and
the jettisoning of cargo to save other property.
Coverage for marine-related liabilities.
War is excluded from basic policies, but can
be bought back.
OPEN COMPETITION STATES
States where insurance companies can set
new rates without prior approval, although
the state’s commissioner can disallow them
if they are not reasonable and adequate or
are discriminatory.
OPERATING EXPENSES
The cost of maintaining a business’s property,
includes insurance, property taxes,
utilities and rent, but excludes income tax,
depreciation and other financing expenses.
OPTIONS
Contracts that allow, but do not oblige, the
buying or selling of property or assets at a
certain date at a set price.
ORDINANCE OR LAW COVERAGE
Endorsement to a property policy, including
homeowners, that pays for the extra
expense of rebuilding to comply with
ordinances or laws, often building codes,
that did not exist when the building was
originally built. For example, a building
severely damaged in a hurricane may have
to be elevated above the flood line when it
is rebuilt. This endorsement would cover
part of the additional cost.
ORDINARY LIFE INSURANCE
A life insurance policy that remains in force
for the policyholder’s lifetime.
I.I.I. Insurance Handbook www.iii.org/insurancehandbook 111