Insurance Glossary N
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Name Position Bond A fidelity bond which covers losses caused by the dishonesty of only those employees named in the bond.
Named Perils Coverages in a property policy that provides protection from loss of perils specifically listed in the insurance policy. Examples of named perils are fire, windstorm, theft, smoke, etc.
National Association of Insurance Commissioners An organization of state insurance commissioners which meets to discuss and develop insurance regulation
Negligence omitting to do something which a reasonable person in similar circumstances would have done, or doing something which a reasonable person in such circumstances would not have done.
Net Total Cash Value The total cash value of a policy minus any policy loan balance.
Net Premium A portion of the premium rate designed to cover benefits of the policy, but not expenses, contingencies, or profit.
No-Fault A type of auto insurance mechanism whereby the right to sue another party for damages caused by negligence is limited and, in exchange, first party benefits are offered.
No-Fault Automobile Insurance A type of insurance in which financial losses resulting from an automobile accident are paid by your own insurer, regardless of who was at fault.
Non-Admitted Insurance Company An insurance company not licensed to do business in a particular state.
Noncancellable A contract that the insured has the right to continue in force by the timely payments of premiums set forth in the contract. No changes are made by the insurer during this period of time.
Nonconfining Sickness A sickness that does not confine an insured to his home or a hospital.
Noncontributory A term applied to employee benefit plans or insurance, which the employer pays the full cost of the premium for all of the employees.
Non-Disabling Injury An injury which does not qualify for total or partial disability.
Nonforfeitable Benefits A benefit under a pension plan that belongs unconditionally to the participant of that plan.
Nonoccupational Policy An insurance contract which insures a person against off the job accidents or sickness.
Non-Owned Automobile provides protection for the company for any liability that might arise from the use of cars for company business which are neither owned or leased by the company.
Non-Contributory A term applied to employee benefit plans under which the employer bears the full cost of the benefits for the employees. One hundred percent of the eligible employees must be insured.
Non-Forfeiture Option One of the choices available if the policy holder discontinues premium payments on a policy with a cash value. This, if any, may be taken in cash, as extended term insurance or as reduced paid-up insurance.
Non-Medical Insurance (Non-Med) Life insurance issued based on the insured's statement of health with no medical examination required.
Non-Medical Limit The maximum face value of a policy that a given company will issue without the applicant taking a medical examination.
Non-Participating Policy A life insurance policy in which the company does not distribute to policy holders any part of its surplus. Note should be taken that premiums for nonparticipating polices are usually lower than for comparable participating polices. Note that some nonparticipating polices have both a maximum premium and a current lower premium. The current premium reflects anticipated experience that is more favorable than the company is willing to guarantee, and it may be changed from time to time for the entire block of business to which the policy belongs.
Nonresident agent An agent licensed to write insurance in a state in which he or she does not live.
Nonrenewal The termination of insurance coverage at an expiration date or anniversary date.
Non-Tobacco Status No cigarette or tobacco usage based upon company guidelines.
Notice of Loss a policy condition requiring the insured to notify the company immediately of any possible claim.
Notice of Cancellation Written notice by an insurance company of their intent to cancel the policy.
