Insurance Glossary N

NAMED PERIL
Peril specifically mentioned as covered in an insurance policy.

NATIONAL FLOOD INSURANCE PROGRAM
Federal government-sponsored program under which flood insurance is sold to homeowners and businesses.

NEGLIGENT OPERATOR
A California DMV status for drivers who collect too many violation points. Drivers with 4 or more points in 12 months, 6 or more in 24 months, or 8 or more in 36 months can have their license suspended.

NO-FAULT
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. California is not a no-fault state; it uses an at-fault (tort) system. Call us to learn how this affects your coverage.

NO-FAULT MEDICAL
A type of accident coverage in homeowners policies.

NON-OWNER CAR INSURANCE
A liability policy for people who don’t own a car but drive borrowed cars occasionally or need to meet an SR-22 requirement. It doesn’t cover cars you own or cars owned by people you live with. A non-owner policy with an SR-22 is usually the cheapest way to meet the DMV’s requirement. See California non-owner SR-22 insurance.

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. California is a no-pay, no-play state: under Proposition 213, uninsured drivers generally can’t recover noneconomic damages.

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

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.

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.

NURSING HOME INSURANCE
A form of long-term care policy that covers a policyholder’s stay in a nursing facility.