Glossary
of Insurance Terms
NAMED PERIL
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Peril specifically
mentioned as covered in an insurance policy.
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NATIONAL FLOOD INSURANCE PROGRAM
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Federal government-sponsored program under which
flood insurance is sold to homeowners and businesses. (See Adverse
selection;
Flood
insurance)
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NET PREMIUMS WRITTEN
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See
Premiums written
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NO-FAULT
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Auto insurance coverage
that pays for each driver’s own injuries, regardless of who caused the
accident. No-fault varies from state to state. It also refers to an
auto liability insurance system that restricts lawsuits to serious cases.
Such policies are designed to promote faster reimbursement and to reduce
litigation.
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NO-FAULT MEDICAL
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A type of accident
coverage in homeowners policies.
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NO-PAY, NO-PLAY
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The idea that people
who don’t buy coverage should not receive benefits. Prohibits uninsured
drivers from collecting damages from insured drivers. In most states
with this law, uninsured drivers may not sue for noneconomic damages
such as pain and suffering. In other states, uninsured drivers are required
to pay the equivalent of a large deductible ($10,000) before they can
sue for property damages and another large deductible before they can
sue for bodily harm.
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NON-ADMITTED ASSETS
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Assets that are not included on the balance
sheet of an insurance company, including furniture, fixtures,
past-due accounts receivable, and agents’ debt balances. (See
Assets)
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NON-ADMITTED INSURER
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Insurers licensed in some states, but not others.
States where an insurer is not licensed call that insurer non-admitted.
They sell coverage that is unavailable from licensed insurers within
the state.
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NOTICE OF LOSS
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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.
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NUCLEAR INSURANCE
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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.
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NURSING HOME INSURANCE
|
A form of
long-term care policy that covers a policyholder’s stay in a nursing
facility.
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