Named Peril vs. All Risk
A "peril" is defined as a cause of damage or loss. To be covered for damage or loss under a "basic” contract, the damage or loss must be caused by a peril that is "named" or listed in the contract. Consequently, if damage or loss is caused by a peril that is not named, there is no coverage. In addition, the contract's exclusions must also be considered in determining coverage.
In a "special” contract, it is not necessary to name or list the insured perils since the intent is to cover all risk of damage or loss. Here, too, the contact's exclusions must be considered; however, the "special” form of coverage provides a much greater coverage quality. Note that "special” coverage should not be construed to mean "all loss" coverage. Certain types of loss are definite and therefore not insurable.
Net Premium
The amount of premium minus the agent's commission.
Net Premiums Earned
The adjustment of net premiums written for the increase or decrease of the company's liability for unearned premiums during the year.
NOC - Rating Purposes
Underwriter’s shorthand derived from general liability and workers compensation rating tables that stands for "not otherwise classified" meaning no more specific classification is available — as in"Clerical Office Employees NOC."
Non-Owned Auto
This term signifies an auto that is neither owned, hired, nor borrowed by the insured under a commercial auto policy. Employees’ cars used in company business are commonly classified this way. The employer’s auto liability cover for use of nonowned autos is covered by entry of symbol 1 ("any auto") or symbol 9 ("nonowned autos") on the declarations page. They may be an additional pemium charged for this coverge. |
