What Is NTO (Not Taken)? Definition

Why it matters

A policy can be not taken if the buyer changes their mind, a bank draft fails, or the buyer cancels during free look. NTOs hurt agent income and lower conversion. Agents reduce NTOs by setting clear expectations, confirming payment details, and following up after the sale. Treatment of NTOs and any chargebacks differs by carrier. Families can always decline a policy they do not want.

Source: law.cornell.edu

Where we use this term

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Related terms

Issued/Paid: Issued/paid is a status that means the carrier approved the policy, issued it, and received the first premium. Agents are usually credited for the sale and commission at this stage.
Policy Delivery: Policy delivery is the step where the issued policy reaches the owner, by mail or electronically. Delivery often starts the free look period and may require a signed receipt or the first premium.
Free Look: Free look is the period after a policy is delivered during which the owner can review it and cancel for a refund of premiums. The length is set by state law and the policy, and often ranges from 10 to 30 days.
Chargeback: A chargeback is when a carrier takes back part of an agent's commission because a policy lapsed, was canceled, or was rescinded within a set period after issue.
Conversion Rate: Conversion rate is the share of contacts or leads that become customers. For an agent, it might be the percent of leads who end up with an issued policy.

All 241 terms

Not Taken (NTO)

Why it matters

Where we use this term

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