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NAMED PERIL |
Peril specifically
mentioned as covered in an insurance policy.
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NATIONAL FLOOD
INSURANCE PROGRAM |
Federal
government-sponsored program under which flood
insurance is sold to homeowners and businesses.
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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.
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NO-FAULT MEDICAL |
A type of accident
coverage in homeowners policies.
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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.
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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.
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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.
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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.
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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.
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NURSING HOME INSURANCE |
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A form of long-term care
policy that covers a policyholder’s stay in a
nursing facility. |
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A coverage that protects
businesses engaged in electronic commerce from losses
caused by hackers.
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HARD MARKET |
A seller’s market in which
insurance is expensive and in short supply.
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HOMEOWNERS INSURANCE POLICY |
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The typical homeowners insurance
policy covers the house, the garage and other structures
on the property, as well as personal possessions inside
the house such as furniture, appliances and clothing,
against a wide variety of perils including windstorms,
fire and theft. The extent of the perils covered depends
on the type of policy. An all-risk policy offers the
broadest coverage. This covers all perils except those
specifically excluded in the policy.
Homeowners insurance also covers additional living
expenses. Known as Loss of Use, this provision in the
policy reimburses the policyholder for the extra cost of
living elsewhere while the house is being restored after
a disaster. The liability portion of the policy covers
the homeowner for accidental injuries caused to third
parties and/or their property, such as a guest slipping
and falling down improperly maintained stairs. Coverage
for flood and earthquake damage is excluded and must be
purchased separately. |
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HOUSE YEAR |
Equal to 365 days of insured
coverage for a single dwelling. It is the standard
measurement for homeowners insurance.
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HURRICANE DEDUCTIBLE |
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A percentage or dollar amount
added to a homeowner’s insurance policy to limit an
insurer’s exposure to loss from a hurricane. Higher
deductibles are instituted in higher risk areas, such as
coastal regions. Specific details, such as the intensity
of the storm for the deductible to be triggered and the
extent of the high risk area, vary from insurer to
insurer and state to state. |
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