Glossary

Nonpecuniary relief refers to nonmonetary compensation for a loss, such as vacating certain premises or refraining from a specific act. Professional liability insurance policies typically exclude coverage for nonpecuniary relief, because it is often impossible for an insurer to compel either an insured or a third party to act or refrain from acting in a certain manner. However, most versions of this exclusion provide coverage to defend against claims requesting nonpecuniary relief.

A nonpracticing extension is an extended reporting period (ERP) endorsement used with claims-made policies, sometimes granted by professional liability insurers when an insured retires, dies, or becomes disabled. There is no charge for such endorsements, and they are most commonly found in policies written to cover doctors, lawyers, and accountants. Eligibility for such provisions usually requires the insured to have been covered by the insurer for a minimum of 5 years.

Nonprofit directors and officers liability insurance is an errors and omissions (E&O) liability insurance covering the directors and officers of nonprofit organizations. Such policies, while resembling the directors and officers (D&O) forms covering for-profit firms, generally offer broader protection by providing entity coverage, employment practices liability insurance (EPLI), and substantially lower retention levels.

Nonprofit insurers are insurer companies that do not operate for profit, such as the "Blue plans."

In nonproportional reinsurance, losses excess of the ceding company's retention limit are paid by the reinsurer, up to a maximum limit. Reinsurance premium is calculated independently of the premium charged to the insured. The reinsurance is frequently placed in layers. Contracts may be continuous or for a specific term.

Nonqualified plans are employee benefit plans not subject to the regulations imposed by the Employee Retirement Income Security Act (ERISA) of 1974. Examples of nonqualified plans include plans falling under other, more specific laws (e.g., workers compensation, unemployment compensation, disability insurance) and unfunded plans maintained solely to provide benefits for certain employees in excess of the limitations imposed on benefits and contributions for tax purposes (e.g., benefit plans for executives or highly compensated employees, such as stock option plans).

Nonratable elements are a type of charge, especially in workers compensation rating, that is based on a catastrophic type of exposure and is thus excluded from ordinary rate making and is also not subject to experience rating and retrospective rating. An example of a nonratable element is an aircraft seat surcharge.

A nonrescission provision refers to a provision sometimes included within liability policies stating that the insurer cannot rescind the policy for any reason. Such provisions are often contained within Side A directors and officers (D&O) liability policies and, less frequently, in D&O policies written to cover privately held and nonprofit corporations. (Side A policies are those covering only the personal liability of the directors and officers rather than the liability of the corporation to indemnify them for their acts.) If an insurer rescinds a policy, it is treated as though the policy never existed, and the insurer must refund the full premium to the insured. Therefore, nonrescission provisions are advantageous for insureds.

Nonresident agent is the terminology for an agent who is licensed in a domicile in which they do not reside.

Nonstandard auto insurance provides coverage for drivers with poor driving records, who may have been denied coverage from standard insurers offering standard auto coverage forms. Such coverage may also be appropriate for an older adult who just got a driver's license or someone who has allowed their policy to lapse and is seeking to be insured again. The premium is typically much higher than that available in the standard market.