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Yes, that term comes from insecurity. Now, I do believe there is are oversexed (i.e. someone who might be a nymphomanic and wants sex with whoever happens to be nearby at the moment) people, but I think this is pretty rare. If you have an active sex drive that doesn't cause you to go and do things that are outside your normal moral code (and that is individual to everyone), I wouldn't say that is oversexed.
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