Glossary

A nonadmitted asset is an asset that may be accounted for in an insurer's balance sheet but not allowed to be counted for purposes of calculating statutory capital or compliance with solvency ratios.

Nonadmitted balance is reinsured liabilities on an insurer's balance sheet (loss reserves and unearned premium reserves) for which no credit is given in the ceding company's statutory statement.

In most countries outside the United States, nonadmitted insurance—international is insurance written by a company that is neither licensed nor registered to do business in the country where the property or risk is located.

In the United States, nonadmitted insurance—US is insurance written by an insurance company not licensed to do business in a certain state.

A nonadmitted insurer is an insurance company not licensed to do business in a certain state or country.

Nonadmitted reinsurance is reinsurance purchased from a company not licensed or authorized to transact business in a particular jurisdiction.

Nonappropriated Fund Instrumentalities Act (NFIA) of 1952 is a federal act that extends the benefits of the Longshore and Harbor Workers' Compensation Act (LHWCA) to civilians working for the US military.

Nonassessable refers to an insurance policy under which the insurer (e.g., a stock company) does not have the right to assess policyholders for additional amounts to make up shortfalls in the cost of operating the company.

Nonassignable designates that a policy cannot be assigned by the owner to a third party.

A noncertified act of terrorism is a terrorist act that does not meet the criteria for a certified act of terrorism and does not trigger the federal reimbursement provisions of the Terrorism Risk Insurance Act (TRIA).