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N578 Remark Code: Coverages Don't Apply to This Loss

N578 means the property and casualty insurer determined that none of the coverages on the policy apply to this loss. The insurer is not liable for the medical bill, so you need to identify another source of payment, such as the patient's health plan or another liable carrier.

Quick facts

Code
N578 (RARC N578)
Status
Active In use since July 15, 2013.
Code set
Remittance Advice Remark Codes (RARC)
Group codes
  • OA (Other Adjustment): The P&C carrier is not liable. The amount generally moves to another payer rather than being written off.
  • PR (Patient Responsibility): Some carriers report the amount as patient responsibility. Check for other coverage before billing the patient.
Official description
Coverages do not apply to this loss.
X12 Remittance Advice Remark Codes, retrieved September 25, 2026
Last verified
against the official X12 list.

What N578 means

Property and casualty policies bundle several coverages, for example bodily injury liability, medical payments, and PIP on an auto policy. Each applies only in certain circumstances. N578 is the carrier’s conclusion that no coverage on this policy fits the loss that produced your bill.

This is a liability decision by an auto, homeowner’s, or other P&C insurer, not a health plan denial. It commonly accompanies CARC P6, P21, or P27.

Common causes

  • Wrong policy. The patient gave the information for a policy that is not tied to the accident.
  • The circumstances fall outside the policy, such as an excluded driver or an activity the policy excludes.
  • Required coverages were not purchased, so there is nothing to pay medical bills from.
  • The loss was reported under the wrong claim.

What to do

  1. Ask the adjuster for the specific reason and whether any other policy or claim applies.
  2. Get the patient’s health insurance and bill it, attaching the P&C decision if the health plan requires proof. See coordination of benefits denials.
  3. Watch the health plan’s filing limit, which may already be running.
  4. Keep the file open if the patient disputes the coverage decision, since a reversal would move the bill back to the P&C carrier.

How to prevent it

At registration for any accident-related visit, collect every possible coverage source: the auto or liability claim number, adjuster contact, and the patient’s health insurance, so a denial does not leave you without a next payer.

Codes that may appear with N578

  • CO-P6 (Based on entitlement to benefits.): The adjustment is based on entitlement to benefits under the policy.
  • CO-P27 (Payment denied based on the Liability Coverage Benefits jurisdictional regulations and/or payment policies.): Payment denied under liability coverage regulations or policy.
  • CO-P21 (Payment denied based on the Medical Payments Coverage (MPC) and/or Personal Injury Protection (PIP)): Denied under auto medical payments or PIP rules.
  • N650 (This policy was not in effect for this date of loss.): The policy was not in effect on the date of loss.
  • N651 (No Personal Injury Protection/Medical Payments Coverage on the policy at the time of the loss.): The policy had no PIP or medical payments coverage at the time of loss.
  • N580 (Determination based on the provisions of the insurance policy.): The determination was based on the policy's provisions.

N578 FAQ

What is a 'loss' here?

The insured event the claim is filed under, such as a car accident or an injury on someone's property. Medical bills are paid only if a coverage on the policy applies to that event.

Who pays now?

Often the patient's health insurance. In some cases another P&C carrier, such as a different vehicle's policy, may be liable.

Can I dispute N578?

The patient or policyholder is usually in the best position to dispute a coverage decision with their insurer. You can ask the adjuster for the reason in writing.