Definition of "Omnibus clause"

The word’s etymology reflects several diverse or seemingly unrelated topics under the same umbrella. As part of everyday discourse, you’ll find the term “omnibus” related to a clause in a dying person’s testament, federal law, or even car insurance policy. 

Omnibus Clause in insurance

The term’s definition covers a section in a liability insurance policy that extends coverage to nameless individuals, others beyond the insured, such as protecting family members. 

Another domain where you can often encounter the omnibus clause is car insurance. Here, it defines a provision in personal automobile policy (PAP). As a result, it provides insurance to individuals driving a vehicle with the insured party’s permission. In other words, this standard vehicle liability guideline boosts the coverage of those driving the car with the insured party’s consent, even though the PAP does not explicitly mention them. For sure, they must have a valid driver’s license on them at all times.

The omnibus clause in real estate

The meaning of the omnibus clause refers to a provision in a will, stipulating that the heirs will still inherit any assets not mentioned therein. Therefore, an omnibus clause in real estate defines a legally sanctified passage in one’s dying wish or testament. According to the clause, an explicitly named beneficiary or more recipients gain as possession any unnamed valuables of the deceased’s estate. 

Omnibus bill definition

Politicians compile an omnibus bill by putting together various laws, measures, and amendments or incorporating varied political subject matters into one document as deadlines approach. They pass an omnibus account in one vote.

In the United States, analysts often refer to omnibus bills as “Big Ugly” bills. For instance, combined appropriations, budget reconciliation bills, and private relief. The United States Congress applies omnibus legislation to bring the budgets of all US departments together in one omnibus expenditure bill. They do so to reduce the federal deficit by tax code restructuring. The Omnibus Budget Reconciliation Act of 1993 is a revealing model.

The omnibus clause in federal statutes

The impediment of justice statute named 18 US Code § 1503 includes an omnibus clause. This clause stipulates that any attempt to impede justice shall be considered criminal behavior. The obstruction of justice can occur using threat, blackmail, or sheer force addressed against a juror, court officer, or judge. The US Supreme Court classified the aforementioned omnibus clause as “a catchall, prohibiting persons from endeavoring to influence, obstruct, or impede the due administration of justice.” (1995 - Source: Woodrum, Michael. “Knowledge and the Nexus Requirement in Obstruction-of-Justice Offenses.”)

image of a real estate dictionary page

Have a question or comment?

We're here to help.

*** Your email address will remain confidential.
 

 

Popular Real Estate Terms

An agreement, debt, or low which can be operationalized, fulfilled, completed, or performed. ...

Individual with legal privileges and obligations. The legal term is sometimes used for a corporation. ...

Corporation whose stockholders are taxed as partners. That is, income is taxed as direct income to the shareholders. The key advantage of this tax treatment is that shareholders escape ...

A real estate owner's policy and rules regarding the use of the property by the tenant. In insurance, a contract that provides coverage against given risks. Coverage limits for real ...

Modification made by a municipality to the zoning of a locality. A change in zoning typically has to be requested and approved by a zoning commission and then the legislative body. It can ...

Same as term spot zoning: Zoning a portion of land in a given area for different purposes than its surrounding functions. For example, a locality may decide to spot zone a vacant lot in a ...

Notice of a pending suit; a public notice given to prospective purchasers and any one else considering an interest in property that the title is being legally challenged, and the outcome is ...

A situation that occurs when borrowed funds cost more than they produce. ...

Partially amortized and requiring a lump sum (balloon) payment at maturity. ...

Popular Real Estate Questions