Open policy (OP)
A type of insurance policy intended to cover and indefinite number of future individual requirement. The insurance contract remains in force until canceled. Under the open policy, individual successive shipments are periodically reported or declared to the insurer and automatically covered on or after the inception date. Open policies can provide efficiency and savings for all parties concerned, especially when the insured conducts a significant volume of highly similar transactions. Some letter of credit transactions require evidence of an individual policy covering the specified shipment. In such cases it has become the practice to use an insurance certificate. See insurance certificate. See insurance certificate; open marine cargo insurance policy.