An insurance company not licensed to do business in a certain state or country. In U.S. jurisdictions, such insurers can nevertheless write coverage through an excess and surplus lines broker licensed in that jurisdiction.
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An insurer who is not able to do business in a certain jurisdiction, as he or she does not have the proper license.

Reinsurance purchased from a company not licensed or authorized to transact business in a particular jurisdiction. Nonadmitted reinsurance may not be treated as an asset against reinsured losses or unearned premium reserves for insurance company accounting and statement purposes.

Reinsurance that is not credited on the ceding company’s annual statement because the reinsurer is not properly licensed in the jurisdiction where the business was conducted.

A policy wherein extra premiums cannot be added. The premium amount is set.

A policy that cannot be assigned to a third party by the owner. The majority of policies are nonassignable.

A policy contract that specifies that the insured may continue coverage by paying the premiums for a specific time frame. During the same time frame, the insurer is prohibited from making changes. The premiums on this type of policy cannot be changed during the term.

With this type of policy, the insurance company cannot cancel or increase the premium or otherwise alter the policy as long as the insured pays premiums on time. The addition of this feature to disability insurance is often expensive.

The situation that exists when a number of insurance policies intended to cover the same property against the same hazards are not identical as to the extent of coverage. Nonconcurrency usually results in an insured not being fully covered for a loss. Modern forms have minimized the problem of nonconcurrency.

When several policies that cover the same property against the same perils do not provide the same amount of coverage. This usually causes the insured to be underinsured should a loss occur.