Glossary

The notice of circumstances during extended reporting period provision refers to a provision found within an extended reporting period (ERP) endorsement of a claims-made liability policy.

A notice of claim provision in a liability insurance policy requires the insured to promptly notify the insurer in the event that a claim is made against the insured.

Notice of occurrence is one of the insured's specified duties under a general liability policy.

Notice to the company is written notice to the insurer as to an occurrence upon which a claim is to be based.

Novation refers to an agreement to replace one party to an insurance policy or reinsurance agreement with another company from inception of the coverage period.

No further remedial action planned is a determination made by the Environmental Protection Agency (EPA) following a preliminary assessment that a site does not pose a significant risk and so requires no further activity under the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA).

Nuclear, biological, chemical (NBC) weapons disperse biological, chemical, or radioactive agents to inflict injury or cause contamination or damage.

Nuclear exclusion refers to the following: (1) A provision or endorsement found in or attached to virtually all property policies (other than the specialty policies designed to cover loss as a result of nuclear radiation).

A nuclear award is a jury award in the plaintiff's favor that exceeds $10 million. Such verdicts are "nuclear" because they are unpredictable, unexpectedly large, and can devastate a business. They often involve catastrophic injuries or tragic deaths. Nuclear verdicts are increasing in size and frequency, and their unpredictability can make them hard to prevent. Such a verdict can damage a company's reputation, increase its insurance costs, limit its coverage options, and even threaten its existence. It can harm a business even if it is overturned or substantially reduced by an appellate court.