Glossary

Noneconomic damages are damages awarded to an injured person that are not based on actual monetary loss but on other forms of injury—for example, pain and suffering awards.

A nonengagement letter is a letter written by an attorney to an individual who has had a conference with the attorney stating that the conference did not produce an agreement to represent the individual in a given case or matter.

A nonfiled line of coverage is one for which state insurance regulators in many states do not require insurers to submit their coverage forms and rates for approval.

Nonfinancial foreign entity is a defined term in Foreign Account Tax Compliance Act (FATCA) legislation, used to denote any foreign entity that is not a financial institution.

The nonforfeiture loan value benefit is a life insurance nonforfeiture benefit option to use the cash surrender value of the policy as collateral for a loan by the insurance company to the policyholder.

The nonforfeiture reduced paid-up benefit is a life insurance policy nonforfeiture benefit option to use the cash surrender value of the policy to purchase a fully paid-up life permanent insurance policy for a lesser amount of coverage.

In whole life insurance policies, nonforfeiture values are benefits that accrue to the insured when the policy lapses from nonpayment of premium.

A nonimputation provision is a clause found in directors and officers (D&O) and professional liability policies stating that intentional misstatements or omissions in the application (e.g., failure to mention circumstances likely to produce a claim in the future) will not bar coverage for individuals who did not sign the application.

Noninsurable risk is a risk that cannot be measured actuarially or in which the chance of loss is so high that insurance cannot be written on it.

Noninsurance is the thoughtful and intentional abstention from the use of insurance to cover an exposure to loss; risk identification was thorough, the uninsured risks are known, and insurance has been considered.