NATIONAL ASSOCIATION OF INSURANCE COMMISSIONERS (NAIC) – The NAIC’s Model Acts suggest or require that states become accredited. This can often be the cause of concern to captive owners.
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NAMED INSURED – An individual or organization that owns and applies for an insurance policy, pays the premium, and is responsible for policy compliance.
NAMED PERILS – A policy issued particularly listing the perils insured against. Compare in the direction of special risks.
NON-ADMITTED INSURERS – Insurance companies not licensed in a state may engage in business in the state if an admitted, properly filed company issues the policy and reinsures losses to the non-admitted reinsurer.
NON-ADMITTED REINSURANCE – A company is “non-admitted” when it has not been licensed and thereby recognized by appropriate insurance governmental authority of a state or country. Reinsurance is “non-admitted” when placed in a non-admitted company and therefore may not be treated as an asset against reinsured losses or unearned premium reserves for insurance company accounting and statement purposes.
NONCONTROLLED FORE – An owned company whose financial results are not consolidated with any of its shareholders, nor are the shareholders allocated any portion of the company’s income for tax purposes. Income tax deferral is created if the NCFC is located in a jurisdiction that does not have an income tax. In other words no tax is due until such time as income is repatriated to its owners.
NON-SUBSCRIBER WORKERS’ COMPENSATION PLAN – A non-subscriber is an employee who elects, by filing appropriate notices required by state insurance authorities, to pay work-related injury loss through some method other than statutory workers’ compensation.
