Dictionary of Insurance Terms -N-

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• 
  Named Perils: Coverage in a property
  policy that provides protection against loss from only the perils specifically
  listed in the policy rather than protection from physical loss. Examples
  of named perils are fire, windstorm, theft, smoke, etc.
• 
  National
  Association of Insurance Commissioners (NAIC): The association of insurance
  commissioners of various states formed to promote national uniformity in
  the regulation of insurance.
• 
  Negligence: Failure to use the care that
  a reasonable and prudent person would have used under the same or similar
  circumstances.
• 
  Net Premium: The portion of the premium
  rate which is designed to cover benefits of the policy, but not expenses,
  contingencies, or profit. The term is also used to describe the portion
  of the premium remitted to the home office by an agent after deduction
  of the agent’s commission.
• 
  Net written premiums: premium
  income retained by insurance companies, directly or through reinsurance,
  after payments made for reinsurance.
• 
  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, expanded first party benefits are offered.
• 
  No-fault Automobile Insurance:
  A form of insurance by which a person’s financial losses resulting from
  an automobile accident are paid by his or her own insurer regardless of
  who was at fault.
• 
  Non-admitted Insurance
  Company: An insurance company not licensed to do business in a particular
  state; such a company, however, may sell excess and surplus insurance in
  that state if admitted insurers lack the capacity or expertise.
• 
  Noncancellable: A contract that the
  insured has the right to continue in force by the timely payments of premiums
  set forth in the contract (1) until at least age 50 or (2) in the case
  of a policy issued after age 44 for at least five years from its date of
  issue, during which period the insurer has no right to make unilaterally
  any change in any provision of the contract while the contract is in force.
• 
  Noncancellable
  Guaranteed Renewable Policy: An individual policy which the insured
  person has the right to continue to force until a specified age, such as
  to age 65, by the timely payment of premiums. During this period, the insurer
  has no right to unilaterally make any changes in any provision of the policy
  while it is in force.
• 
  Nonconfining Sickness: A sickness
  that disables the insured person but does not confine him to his home or
  a hospital.
• 
  Noncontributory: 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.
• 
  Nondisabling Injury: An injury
  which may require medical care, but does not result in loss of working
  time or income.
• 
  Nondisabling Injury Benefit:
  A benefit in some disability income policies providing payment for medical
  expense due to injury when medical care is necessary but the insured is
  not totally disabled.
• 
  Nonforfeiture Option: One of
  the choices available if the policyholder 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.
• 
  Nonmedical Limit: The maximum face
  value of a policy that a given company will issue without the applicant
  taking a medical examination.
• 
  Nonoccupational Policy: Contract
  which insures a person against off-the-job accident or sickness. It does
  not cover disability resulting from injury or sickness covered by Workers’
  Compensation. Group accident and sickness policies are frequently non-
  occupational.
• 
  Nonoccupational Policy: One
  that provides off-the-job coverage only; it does not cover loss resulting
  from accidents or sickness arising out of or in the course of employment
  or covered under any workers’ compensation law.
• 
  Nonparticipating Insurance:
  Plan of insurance under which the policy-holder is not entitled to share
  in the dividend distribution of the company.
• 
  Nonprofit Insurers: Persons organized
  under special state laws to provide hospital, medical, or dental insurance
  on a nonprofit basis. The laws exempt them from certain types of taxes.