Insurance Glossary

NAMED PERIL

A specific risk or cause of loss that is explicitly listed as covered in an insurance policy. Only perils named in the policy are insured.

NATIONAL FLOOD INSURANCE PROGRAM (NFIP)

A federally sponsored program that provides flood insurance to homeowners, renters, and businesses. Flood coverage is administered by the federal government and sold through licensed insurance agents.

NO-FAULT

An auto insurance system in which each driver’s own insurance pays for injuries regardless of who caused the accident. In many states, no-fault laws also limit lawsuits to serious injuries to reduce litigation and speed up claim payments.

NO-FAULT MEDICAL

A type of coverage included in some homeowners policies that pays medical expenses resulting from accidents without regard to fault.

NO-PAY, NO-PLAY

A legal concept that restricts uninsured drivers from recovering certain damages after an auto accident. In many states, uninsured drivers cannot collect non-economic damages such as pain and suffering, or must meet high deductibles before filing lawsuits.

NON-ADMITTED ASSETS

Assets that are excluded from an insurer’s statutory balance sheet, such as furniture, fixtures, overdue receivables, and agent debt balances, because they are not easily convertible to cash.

NON-ADMITTED INSURER

An insurance company that is not licensed in a particular state but may provide coverage for risks that admitted insurers are unwilling or unable to insure.

NOTICE OF LOSS

A formal written notification required by insurers that informs them of an accident or loss. It is part of a policyholder’s contractual duties after a loss occurs.

NUCLEAR INSURANCE

Insurance coverage that protects operators of nuclear facilities against liability and property damage resulting from nuclear accidents, involving both private insurers and federal government participation.

NURSING HOME INSURANCE

A form of long-term care insurance that covers the cost of care provided in a licensed nursing facility.