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Reference guide

Insurance Glossary

Plain-language definitions of common insurance terms across policies, coverage, and claims. Check your policy or plan documents for the terms that apply to you.

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Showing 23 of 23 matching terms

Terms beginning with N

Named insured

General insurance
The person or organization specifically listed in the policy declarations as an insured.
Also called: primary named insured

Named non-owner policy

Auto insurance
Auto liability coverage for a named person who does not own a vehicle but may occasionally drive eligible vehicles.

Named perils policy

Home insurance
A policy that covers only the causes of loss specifically listed in its terms.

National Association of Insurance Commissioners

General insurance
A U.S. organization of state insurance regulators that develops model laws, standards, and data resources.
Also called: NAIC

Net investment income

General insurance
Income an insurer earns from investments after associated investment expenses.

Net premiums written

General insurance
Premium retained by an insurer after premiums ceded to reinsurers are deducted.

Net retention

General insurance
The amount of loss or risk an insurer retains after applying reinsurance recoveries.

Network

Health insurance
The doctors, facilities, and other providers a health plan has contracted with or recognizes for covered care.
Also called: provider network

Network adequacy

Health insurance
A standard for whether a health plan’s provider network has enough appropriate providers for enrolled members to obtain covered care.
Also called: adequate network

New car replacement coverage

Auto insurance
Optional coverage that may replace a qualifying recently purchased totaled vehicle with a new comparable vehicle instead of paying depreciated value.
Also called: new vehicle replacement

Newly acquired property coverage

Business insurance
Temporary coverage a property policy may provide for property acquired during the policy period, subject to limits and notice rules.

No-fault insurance

Auto insurance
A system in some places where certain injury benefits may be paid through a person’s own auto coverage after an accident.

Non-formulary drug

Health insurance
A prescription drug that is not included on a health plan’s standard covered drug list.
Also called: non-covered drug

Non-owned auto liability

Business insurance
Business auto liability coverage for qualifying vehicles the business does not own, such as employee-owned vehicles used for work.
Also called: non-owned auto coverage

Non-owned trailer liability

Business insurance
Coverage addressing liability from eligible trailers the insured uses but does not own.

Non-owner car insurance

Auto insurance
Auto liability coverage for a person who does not own a vehicle but drives borrowed or rented vehicles under covered circumstances.
Also called: non-owned auto insurance

Non-waiver agreement

Claims
An agreement allowing an insurer to investigate or handle a claim without giving up available coverage defenses.

Nonadmitted insurer

General insurance
An insurer not licensed in a particular state, though it may lawfully provide eligible surplus lines coverage under state law.
Also called: unauthorized insurer

Nonconcurrency

General insurance
A difference in terms, limits, deductibles, or policy periods between two policies intended to cover the same loss.

Nonforfeiture option

Life insurance
A choice available under a cash-value life policy after premiums stop, such as reduced paid-up insurance or extended term insurance.

Nonqualified annuity

Life insurance
An annuity purchased with after-tax funds outside a qualified retirement plan.

Nonrenewal

General insurance
A decision not to continue a policy when its current term ends.