A life insurance policy that does not participate in the divisible surplus so that the amount payable is the sum insured only. Alternatively called a non-participating policy.
Tag: RAW
Non-Proportional
Reinsurance arrangements, where the claims are not shared proportionately between the cedant and reinsurer.
Non-Proportional Contracts
In non-proportional business the Ceding office retains the bottom layer of risk itself and the Reinsurers only have to pay claims above this level. The most common type of non-proportional Reinsurance is called excess of loss Reinsurance. See Also: “Excess of loss Reinsurance.”
Non-proportional reinsurance
A type of reinsurance in which the reinsurer does not share similar proportions of the premiums earned and the claims incurred by the reassured plus certain associated expenses. Compare proportional reinsurance. Excess of loss reinsurance is an example of non-proportional reinsurance.
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UK: any form of reinsurance which is not proportional reinsurance.
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UK: Reinsurance in which the cover is not in direct proportion to the reinsured’s loss as in quota share and surplus treaties. The reinsurer accepts liability wholly or partly on individual losses or losses on the whole account when they exceed an excess point (an attachment point) subject to an upper limit. Most non-proportional reinsurances are structured around excess of loss reinsurance. See EXCESS OF LOSS RATIO; EXCESS PER OCCURENCE; EXCESS PER RISK.
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REINSURANCE,REFERENCE: See: Excess of Loss Reinsurance.
Non-Renewal
Termination of insurance coverage at an expiration date or anniversary date. This action may be taken by an insurer who refuses to renew, or y an insured who rejects a renewal offer.
Non-Selection Limit
The amount of benefits under a group health insurance up to which persons will be accepted into member-ship of the group without evidence as to their health.
Non-standard
An insurer or policy designed for less desirable risks premiums are generally higher and fewer coverages are offered.
Non-Standard Auto (High Risk Auto or Substandard Auto)
Insurance for motorists who have poor driving records or have been cancelled or refused insurance. The premium is much higher than standard auto due to the additional risks.
Non-standard construction
Buildings of unusual construction or incorporating materials more combustible than those used in standard construction. They fall below ‘grade 2’, i.e. buildings made of predominately non-combustible materials. The fire insurer is likely to increase the premium, and may restrict the cover
Non-Tariff Barriers (NTB)
Economic, political, administrative or legal impediments to trade other than duties, taxes and import quotas.