Glossary N 
I

NAIC See National Association of Insurance Commissioners.

NALU National Association of Life Underwriters.

NASD National Association of Securities Dealers.

NFIP National Flood Insurance Program.

NICB See National Insurance Crime Bureau.

named insured
1) A policyholder, the person to whom the policy is issued; any person or corporation, or any member thereof, specifically mentioned as insured in a policy, as distinguished from others, who, though unnamed, are protected under certain circumstances.
2) In life insurance, this is the person named on the face page of the policy whose life is covered by the basic contract. (Other persons may be covered by riders attached to the basic contract.)

named perils Named peril property coverage specifies perils insured against, as compared to “all risk” coverage which specifies perils not covered.

National Association of Insurance Commissioners (NAIC) A national organization of insurance officials who meet regionally and nationally to discuss matters of common interest.

National Insurance Crime Bureau (NICB) A not-for-profit organization dedicated to combating insurance?related crime. NICB personnel work in partnership with insurers and law enforcement to identify, investigate and prosecute organized rings, corrupt professionals and repeat offenders.

negligence An unreasonable or imprudent act resulting from carelessness, ignorance, thoughtlessness or inaction, but never the intention of an individual. Before a court awards to an injured party for the negligent act of another, four elements of negligence must be present at the same time:

1) There must have been a duty by one party to protect the other party or the other party’s property;
2) There must have been a failure to live up to that duty;
3) An actual injury to a person or property must have taken place;
4) The failure to exercise the proper degree of care must be the proximate cause of the injury or damage.

net cost Premiums paid minus cash value and any policy dividends paid as of the date the calculation is being made.

net premiums The premiums calculated on the basis of a given mortality table and a given rate of interest, without any allowance for loading.

no-fault automobile insurance An insurance plan providing that after an automobile accident, each party collects from his or her own insurer, regardless of fault.

nonadmitted assets Assets that the insurer carries on its books, but that must be deducted from gross assets to determine its financial condition in reporting to a state insurance department. Also, adjustments to book value of an asset to bring it into agreement with statutory value.

noncancelable policy In health insurance, a policy on which the insurer may not refuse to renew the contract nor can the premium be increased.

Nonconcurrency The situation which exists when a number of fire or other policies covering the same property are not identical to the forms of coverage afforded. When this situation exists, the adjustment of losses becomes extremely difficult and usually unsatisfactory.

noncontributory plan A group insurance plan in which the entire premium is paid by the employer.

nonforfeiture options This term refers to options available under terms of the contract after cash values have been created.

nonmedical insurance Life insurance issued on a regular basis without requiring the applicant to submit to a regular medical examination. In passing on the risk, the company relies on the applicant’s own answers to questions regarding his/her physical condition and on personal references or inspection reports.

nonownership liability This protects the policyholder against claims for bodily injury or property damage liability arising out of the use of automobiles not owned by but used by his/her employees (or other people) in the course of his/her business.

nonparticipating policy A policy under which the policy owner is not entitled to dividends or other refunds.