Liability policy clause prohibiting the insured from compromising or settling any claim or admitting liability without the written consent of the insurer. The clause is not contrary to public policy and the insurer does not have to show that he was prejudiced in order to rely on it.
Insurance Encyclopedia
Non-Admitted Assets
Assets that do not qualify under law for insurance statement purposes. Examples would be furniture, fixtures, agents’ debit balances and accounts receivable which are over ninety days old.
Non-Admitted Company
Insurance Company that has not been licensed to do business in a particular country. In that country it is a “non-admitted Company.”
Non-Admitted Insurer
An insurer that has not been licensed to write insurance in a given jurisdiction.
Non-Admitted Reinsurance
Reinsurance placed with a reinsurer that does not have authorized or equivalent status in the jurisdiction of domicile of the ceding company and for which the ceding insurer may not take accounting credit in the ceding insurer’s Annual Statement without the reinsurer posting security. (See also Admitted Reinsurance.)
Non-apportionable annuity
An annuity under which the payments end with the final payment preceding death. No pro rata amount is paid to cover the period between that payment and the time of death.
Non-avoidance of compulsory insurance
Authorised motor insurers and employers’ liability are restricted in their ability to avoid liability under policies covering compulsorily insured liabilities. Where a claim is met solely because of the nonavoidance provisions the insurer has a right of recovery against the insured.
Non-cancelable or non-cancelable and guaranteed renewable policy
A policy which the insured has the right to continue in force by the timely payment of premiums set forth in the policy to a specified age, during which period the insurer has no right to make unilaterally any change in any provision of the policy while the policy is in force.
Non-Cancellable Policy
An Insurance contract that may not be terminated. A continuous term health insurance policy that guarantees the insured the right to renew for a stated number of years or to a stated age (usually +60) with the premium at renewal guaranteed.
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See: PERMANENT POLICIES.
Non-Cash Advice
A preliminary advice to an underwriter about a premium or claim.