Extended Glossary of Common Insurance Related Terms

NAMED PERIL

Peril specifically mentioned as covered in an insurance policy.

NATIONAL CREDIT FILE

The National Credit File provides objective consumer information regarding the financial history of an individual. Information contained in this report is often used to calculate insurance scores.

NATIONAL FLOOD INSURANCE PROGRAM

Federal government-sponsored program under which flood insurance is sold to homeowners and businesses. (See Adverse selection, Flood insurance )

NET PREMIUMS WRITTEN

See Premiums written

NO-FAULT

No-fault insurance refers to the way insurance companies settle claims. Generally, a no-fault policy will not require that blame be assigned in order for a policyholder to be paid.

NO-FAULT MEDICAL

A type of accident coverage in homeowners policies.

NO-FAULT STATES

In some states, called no-fault states, insurance companies are legally required to pay a policyholder's covered losses, regardless of who is at fault in an accident. Some no-fault states also restrict the right to sue for damages.

In states without no-fault regulations, the insurance company covering the person who caused an accident is forced to pay for covered losses.

NO-PAY, NO-PLAY

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.

NON-ADMITTED ASSETS

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 )

NON-ADMITTED INSURER

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.

NON-PASSIVE ALARM

A non-passive alarm must be manually activated every time you leave the car. If someone attempts to open your car, the alarm sounds, and the system disables the automobile's starter, ignition system, and/or fuel circuit.

You may qualify for a discount on your insurance premium if your car is equipped with such an alarm.

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.