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  • NAAIA (National African American Insurance Association)
  • NAFTA
  • NAHU
  • NAIA--National Association of Insurance Agents
  • NAIB--National Association of Insurance Brokers, Inc.
  • NAIC--National Association of Insurance Commissioners
  • NAIC Insurance Regulatory Information System (IRIS)
  • NAICS
  • NAII
  • NAILBA
  • NAII--National Association of Independent Insurers
  • NAIW--National Association of Insurance Women
  • Name schedule bonds
  • Named insured
  • Named perils policy
  • NAMIC--National Association of Mutual Insurance Companies
  • NAPSLO
  • NATARI
  • National African American Insurance Association (NAAIA)
  • National Alliance for Insurance Education and Research
  • National Association of Casualty and Surety Agents
  • National Association of Casualty and Surety Executives
  • National Association of Health Underwriters
  • National Association of Independent Insurers
  • National Association of Independent Life Brokerage Agencies
  • National Association of Independent Insurers (NAII)
  • National Association of Insurance Agents (NAIA)
  • National Association of Insurance Brokers, Inc. (NAIB)
  • National Association of Insurance Commissioners (NAIC)
  • National Association of Insurance Women (NAIW)
  • National Association of Mutual Insurance Agents
  • National Association of Mutual Insurance Companies (NAMIC)
  • National Association of Professional Surplus Lines Offices, Ltd. (NAPSLO)
  • National Association of Securities Dealers (NASD)
  • National Association of Surety Bond Producers, Inc.
  • National Automobile Theft Bureau
  • National Board Schedule
  • National Building Code
  • National Conference of Insurance Guaranty Funds
  • National Council on Compensation Insurance
  • National Crop Insurance Services
  • National Fire Protection Association
  • National Flood Insurance Act of 1968
  • National health insurance
  • National Organization of Life and Health Guaranty Associations (NOLHGA)
  • National Risk Retention Association (NRRA)
  • National Safety Council
  • National Workers Compensation Reinsurance Pool
  • Nationwide definition
  • Nationwide Inter-Company Arbitration Agreement
  • Nationwide Marine Definition
  • Natural perils
  • Natural premium
  • Natural resource(s) damages
  • Naturopathy
  • NCCI
  • NCIGF
  • NCIS
  • N.E.C.
  • Negative film insurance
  • Negligence
  • NEL--noneconomic loss
  • Net amount at risk
  • Net cash value
  • Net increase
  • Net level premium reserve
  • Net line
  • Net loss
  • Net premium
  • Net premiums written
  • Net profit
  • Net retained lines clause
  • Net retention
  • Net underwriting loss
  • Net underwriting profit
  • New for old
  • New York Board of Fire Underwriters
  • New York Insurance Exchange
  • NILS
  • N.O.C.
  • No-fault automobile insurance
  • No-load fund
  • Nominal damages
  • Nonadmitted assets
  • Nonadmitted company
  • Nonadmitted insurance
  • Nonadmitted insurer
  • Nonadmitted reinsurer
  • Nonassessable mutual
  • Nonassessable policy
  • Nonbinder risk
  • Noncancelable or noncancelable/guaranteed renewable policy
  • Noncancellable policy
  • Noncertified act of terrorism
  • Noncontributory plan
  • Non-cumulation clause
  • Noncurrent
  • Nonduplication of benefits
  • Noneconomic loss (NEL)
  • Nonfleet automatic
  • Nonforfeiture benefit
  • Nonforfeiture value
  • Noninsurance
  • Nonmedical application
  • Nonowned automobile liability insurance
  • Nonparticipating insurance
  • Nonprofit insurers
  • Nonproportional reinsurance
  • Nonrecording chattel mortgage policy
  • Nonrenewal
  • Nonrenewal laws
  • Nonresident agent
  • Nonsmoker discount
  • Nonstandard insurance
  • Nonvalued policy
  • Nonwaiver agreement
  • Normal retirement age
  • North American Free Trade Agreement (NAFTA)
  • North American Industry Classification System (NAICS)
  • Not Elsewhere Classified
  • Not Otherwise Classified
  • Not taken
  • Notary public bond
  • Notice of loss
  • Notice of occurrence
  • Notice to company
  • NRRA
  • Nuclear Energy Insurance Association
  • Nuclear energy liability insurance
  • Nuisance value
  • Numerical rating system
  • Numismatic property
  • Nurse case manager
  • Nursing home professional liability policy
  • Nursing liability
[N084]

NAAIA (National African American Insurance Association)

An association of minority insurance professionals established to promote professional development, encourage entrepreneurship and create a greater level of appreciation within the insurance industry for the expertise and contributions made by its minority participants. Headquarters: Cincinnati, OH.
[N090]

NAFTA (North American Free Trade Agreement)

This is a historic agreement between Canada, Mexico and the U.S. Briefly, the agreement’s purpose is to foster regulations, procedures and working groups to facilitate the flow of goods, services and resources between the countries including more regulatory uniformity.
[N113]

NAHU

(See National Association of Health Underwriters.)
[N001]

NAIA--National Association of Insurance Agents

A large trade association whose purpose is to protect the business interests of its members, who are also members of state associations. Headquarters: Washington, DC.
[N002]

NAIB--National Association of Insurance Brokers, Inc.

An organization which represents brokers and presents their views before company bureaus, boards, and government agencies, proposes studies and current state and national legislation, supports the interests of brokers and the insurance-buying public, and informs the public of functions and responsibilities of the insurance broker. Headquarters: Washington, DC.
[N003]

NAIC--National Association of Insurance Commissioners

A voluntary organization of state insurance commissioners, superintendents and directors. NAIC focus upon research studies that often lead to model bills that are recommended to states as uniform laws and regulations. Also provided are valuations of securities held by insurance companies. Annual statements are required by the NAIC from all licensed insurance companies.
[N004]

NAIC Insurance Regulatory Information System (IRIS)

Formerly known as Early Warning System or Early Warning Tests, financial ratio and performance criteria designed by the National Association of Insurance Commissioners to identify insurance companies which may need close surveillance by state insurance departments.
[N085]

NAICS

This is replacing the U.S. Standard Industrial Classification (SIC) system. NAICS was developed jointly by the U.S., Canada, and Mexico to provide new comparability in statistics about business activity across North America.
[N104]

NAII

(See Property Casualty Insurers Association of America.)
NAILBA

(See National Association of Independent Life Brokerage Agencies.)
[N005]

NAII--National Association of Independent Insurers

A trade association with a membership of hundreds of fire and casualty companies of all types throughout the U.S., NAII acts as an advisory organization and statistical agent for independent insurers. Headquarters: Des Plaines, IL.
[N006]

NAIW--National Association of Insurance Women

An organization designed to broaden its members' knowledge of insurance, promote public safety, and conduct public service programs. Headquarters: Tulsa, OK.
[N095]

Name schedule bonds

A list of persons (typically public officials) along with their respective bond amounts.
[N007]

Named insured

The person designated in the policy as the insured, as opposed to someone who may have an interest in a policy but who is not shown by name.

(See insured.)
[N008]

Named perils policy

One which specifies the exact causes of loss for which the insurer will pay, as contrasted with a policy which insures against "all risks" and then lists only exclusions, modifications, and conditions.
[N009]

NAMIC--National Association of Mutual Insurance Companies

A trade association representing more than 1,000 member property-liability insurers (75% of which are farm, county or township mutuals, and 25% of which are advanced premium mutuals) in gathering and analyzing information on all matters relating to insurance and the prevention of losses. Headquarters: Indianapolis, IN.
[N114]

NAPSLO

(See National Association of Professional Surplus Lines Offices, Ltd.)
NATARI

(See National Association of Traffic Accident Reconstructionists and Investigators.)
[N086]

National African American Insurance Association (NAAIA)

An association of minority insurance professionals established to promote professional development, encourage entrepreneurship and create a greater level of appreciation within the insurance industry for the expertise and contributions made by its minority participants. Headquarters: Cincinnati, OH.
[N108]

National Alliance for Insurance Education and Research

An organization founded in 1969 for the purpose of offering practical continuing education to insurance and risk management personnel. This group developed the CIC (Certified Insurance Counselor) Designation. Headquarters: Austin, TX.
[N010]

National Association of Casualty and Surety Agents

A trade organization of insurance agents who represent and sell for stock insurers. Its purpose is to foster the growth of its members through cooperation with the insurers its members represent. Headquarters: Chevy Chase, MD.
[N011]

National Association of Casualty and Surety Executives

The insurance company organization which cooperates with the National Association of Casualty and Surety Agents in discussing common problems. Headquarters: New York, NY.
[N115]

National Association of Health Underwriters

An organization that represents health insurance professionals (including carriers), represents their views before boards and government agencies. It proposes studies and current state and national legislation, supports the interests of its members, and informs the public of functions and responsibilities of health insurance professionals. Headquarters: Arlington, VA.
[N105]

National Association of Independent Insurers

(See Property Casualty Insurers Association of America.)
National Association of Independent Life Brokerage Agencies

A nationwide organization that acts as a source of networking, education and advocacy for insurance professionals who provide life, health and other similar products to the insurance consuming public. Headquarters: Fairfax, VA.
[N012]

National Association of Independent Insurers (NAII)

A trade association with a membership of hundreds of fire and casualty companies of all types throughout the U.S. NAII acts as an advisory organization and statistical agent for independent insurers. Headquarters: Des Plaines, IL.
[N013]

National Association of Insurance Agents (NAIA)

A large trade association whose purpose is to protect the business interests of its members, who are also members of state associations. Headquarters: Washington, DC.
[N014]

National Association of Insurance Brokers, Inc. (NAIB)

An organization which represents brokers and presents their views before company bureaus, boards, and government agencies, proposes studies and current state and national legislation, supports the interests of brokers and the insurance-buying public, and informs the public of functions and responsibilities of the insurance broker. Headquarters: Washington, DC.
[N015]

National Association of Insurance Commissioners (NAIC)

A voluntary organization of state insurance commissioners, superintendents and directors. NAIC focus upon research studies that often lead to model bills that are recommended to states as uniform laws and regulations. Also provided are valuations of securities held by insurance companies. Annual statements are required by the NAIC from all licensed insurance companies.
[N016]

National Association of Insurance Women (NAIW)

An organization designed to broaden its members' knowledge of insurance, promote public safety, and conduct public service programs. Headquarters: Tulsa, OK.
[N017]

National Association of Mutual Insurance Agents

Now the Professional Insurance Agents (PIA), formerly the National Association of Mutual Insurance Agents, a trade association whose purpose is to protect the business interests of its members, who also are members of state associations. Headquarters: Alexandria, VA.
[N018]

National Association of Mutual Insurance Companies (NAMIC)

A trade association representing more than 1,000 member property-liability insurers (75% of which are farm, county or township mutuals, and 25% of which are advanced premium mutuals) in gathering and analyzing information on all matters relating to insurance and the prevention of losses. Headquarters: Indianapolis, IN.
[N019]

National Association of Professional Surplus Lines Offices, Ltd. (NAPSLO)

A trade association of major surplus lines producers and surplus lines companies, headquartered in Roswell, GA.
[N077a]

National Association of Securities Dealers (NASD)

A self-regulating arm of the securities industry.
[N020]

National Association of Surety Bond Producers, Inc.

A trade association of the leading surety bond producers in the United States, Canada and Puerto Rico. Headquarters: Chevy Chase, MD.
[N021]

National Automobile Theft Bureau

A nationwide organization engaged in prevention and reduction of motor vehicle fire and theft losses, and cooperating with law enforcement officers in performing these functions. Acts as an information clearinghouse and recordkeeping organization. Headquarters: Palos Hills, IL.
[N022]

National Board Schedule

A 10-category ranking or schedule of public fire protection of cities and towns established in 1916. The grading is currently maintained by the Insurance Services Office for use in making fire insurance rates and to encourage local governments to maintain better fire fighting equipment and personnel. A city or town is ranked in one of the categories by receiving deficiency points for failing to meet established standards under each of these major headings: water supply, fire department, fire service communications, fire safety control, climate, and divergence between fire department and water supply. Town Class I is the best class for a city or town having fewer than 501 points, and Town Class 10 is the worst for a city or town having more than 4,500 points.
[N023]

National Building Code

National safety standards that were developed by the American Insurance Association, in the hopes they would be adopted by the various state and local governments to encourage uniformity in building construction, design and overall improved standards.
[N109]

National Conference of Insurance Guaranty Funds

This nonprofit association was established in December 1989. Its purpose is to assist the nationwide network of property and casualty guaranty funds. Specifically, it shares information on insurer insolvencies that affect more than one state. Headquarters: Indianapolis, IN.
[N024]

National Council on Compensation Insurance

An association of insurance companies providing workers compensation insurance. Its main functions are rate making, collecting related statistics, and developing rating plans relative to compensation insurance. Operates through administrative bureaus located in many states. Headquarters: New York, NY.
[N096]

National Crop Insurance Services

The NCIS is an advisory organization that was formed in 1915. It provides a variety of services to crop insurers and their industry including forms development, loss statistics, regulatory and compliance, underwriting rules, product development, training, and lobbying. Headquarters: Overland Park, KS.
[N025]

National Fire Protection Association

An organization of those interested in the prevention of damage by fire. Its membership includes insurance companies, rating bureaus, manufacturers of fire prevention and extinguishing equipment, and officers of corporations in charge of fire prevention and safety work on land and at sea. Sets standards and issues constructive literature on the subject. Headquarters: Quincy, MA.
[N026]

National Flood Insurance Act of 1968

An act establishing a basis for flood insurance as a joint venture between the private insurance industry and the federal government. The federal government has since taken over the entire program.
[N027]

National health insurance

A national or federal government sponsored and administered health insurance program, not found in the United States, but used in various other countries such as Canada and Great Britain. In this type of program, the health insurance needs of all citizens are covered, with the premiums paid or financed by taxes.
[N078]

National Organization of Life and Health Guaranty Associations (NOLHGA)

A national association of state guaranty associations.

(See also guaranty association.)
[N087]

National Risk Retention Association (NRRA)

A trade group form by purchasing groups (PGs) and risk retention groups (RRGs). Headquarters: Minneapolis, MN.
[N028]

National Safety Council

An association chartered by Congress to carry out a national program for reducing accidents of all kinds. The council disseminates information on accident prevention, offers a public information and publicity program for newspapers, radio, television, etc., cooperates with public officials at federal, state and local levels, and, in general, provides national leadership in the field of safety. Headquarters: Chicago, IL.
[N029]

National Workers Compensation Reinsurance Pool

A reinsurance organization in which hazardous workers compensation risks assigned to insurers under various insurance plans are reinsured into a pool in which all companies participate proportionately, distributing losses so that undue loss to any one company may be avoided. At this time, the pool operates in 30 states. Headquarters: New York, NY.
[N088]

Nationwide definition

Defines the classes of risks that can be written under inland marine, marine or transportation insurance, such as domestic shipments, exported/imported goods, floater property instrumentalities of transportation (i.e,. bridges) and communication (i.e., satellites).
[N030]

Nationwide Inter-Company Arbitration Agreement

An arrangement where insurance companies settle automobile physical damage subrogation issues among themselves without the delays and expenses of litigation. All companies subject to this agreement bind themselves to submit disputed subrogation claims against another signatory company. Disputes are settled by local arbitration committees from a study of the claim files, usually without the need to call witnesses. The agreement is administered by the Insurance Arbitration Forum, headquartered in New York, NY.
[N031]

Nationwide Marine Definition

The 1953 NAIC recommendations, since adopted by most states, of those subjects which should be considered as marine insurance for regulatory purposes: insurance covering domestic shipments being transported or subject to transportation, insurance on instrumentalities of transportation and communication, and property floaters covering property being transported or subject to being transported. While the Definition does not differentiate between ocean and inland marine insurance, its scope is primarily inland.
[N032]

Natural perils

One of the three categories of perils commonly considered by insurance, the other two being human perils and economic perils. This category includes such perils as injury and damage caused by natural elements such as rain, ice, snow, typhoon, hurricane, volcano, wave action, wind, earthquake, or flood.

(See economic perils, human perils, and peril.)
[N033]

Natural premium

In life insurance, the base premium or manual premium that is calculated through the use of a mortality table for one year's worth of insurance at a specific age, for $1,000 worth of insurance.
[N110]

Natural resource(s) damages

Refers to damages that may be claimed only by certain entities (typically, federal agencies and state governments). The damages reflect the economic loss caused by a given party's injury to an area's resources, such as land, fish, wildlife, air, water (including groundwater) and others.
[N106]

Naturopathy

Treatment of disease or injury by strengthening the body's natural healing ability through food, exercise and heat.
[N097]

NCCI (National Council on Compensation Insurance)

An association of insurance companies providing workers compensation insurance. Its main functions are rate making, collecting related statistics, and developing rating plans relative to compensation insurance. Operates through administrative bureaus located in many states. Headquarters: New York, NY.
[N111]

NCIGF

(See National Conference of Insurance Guaranty Funds.)
[N098]

NCIS (National Crop Insurance Services)

The NCIS is an advisory organization that was formed in 1915. It provides a variety of services to crop insurers and their industry including forms development, loss statistics, regulatory and compliance, underwriting rules, product development, training, and lobbying. Headquarters: Overland Park, KS.
N.E.C.

(See Not Elsewhere Classified.)
[N034]

Negative film insurance

Pays a producer of commercial films the cost of re-shooting should the film suffer damage in the course of production.
[N035]

Negligence

The failure to exercise the care that an ordinary prudent person would exercise: either doing that which a prudent person would not do, or failing to do that which a prudent person would do.
[N035a]

NEL--noneconomic loss

A loss that is not monetary in nature. Nor is it based upon financial (economic) standards. For example: a person whose finger is cut off in a piece of machinery while performing that normal job will have a financial loss associated with medical costs, but a noneconomic loss also occurs resulting from the loss of use of the finger. A loss has occurred because of the reduction in the quality of the employee's life. This is a noneconomic loss.
[N036]

Net amount at risk

In life insurance, the net amount at risk is the difference between the limit of insurance or face amount of the policy and the reserve or cash value that has accumulated.
[N037]

Net cash value

The amount that will be paid the insured or the insured's beneficiary at the time of the insured's death, or the amount paid should the insured surrender the policy for its cash value. It is calculated by taking the cash value and subtracting any loans that may still be outstanding, and adding any dividends that may have accumulated which have not been used for premium payment on other options.
[N038]

Net increase

The premium amount an insurer has increased over the prior period of time, such as the amount of premium increase this annual period over the prior annual period. It is calculated by adding together the total of all new business premiums and renewal premiums, then subtracting lapsed or canceled policy premiums.
[N039]

Net level premium reserve

With respect to life insurance, it is a premium reserving method used to keep reserves level. Basically, the premium reserves are set higher than needed in the early years of a policy to compensate for the inadequate premiums in its later years.
[N040]

Net line

The amount of insurance the company carries or retains on a risk after deducting reinsurance from its "gross" line.

(See net retention, and retention.)
[N041]

Net loss

The actual net or final total amount of the loss experienced, calculated by adding the sum of all the amounts paid and subtracting reinsurance, salvage, and other recoveries such as subrogation.
[N042]

Net premium

1) The gross (paid) premium less any return premium or dividend.

2) The premium less the commission.
[N043]

Net premiums written

The total sum of all types of premiums written by an insurer, minus any premiums ceded to reinsurers.
[N044]

Net profit

1) In accounting, the difference between all income and all outgo, including reserves provided for expected outgo.

2) A subject of insurance if a loss of net profit is caused by an insurable peril.
[N045]

Net retained lines clause

The clause in an excess of loss reinsurance contract which explains that the excess of loss reinsurance applies only to those losses that apply to the ceding insurer's net retentions. The excess of loss contract does not apply to losses otherwise covered by other reinsurance or above the insured's net retention.
[N046]

Net retention

The amount for which a company is liable for its own account for example, the gross amount less any reinsurance it may have secured.

(See net line, and retention.)
[N047]

Net underwriting loss

1) Money lost by an insurer in its underwriting operations, as distinguished from money earned or lost in the investment of assets.

2) Earned premiums less losses, loss adjustment expenses incurred and other underwriting expenses incurred, usually determined monthly for managerial purposes, that show a loss.
[N048]

Net underwriting profit

1) Money earned by an insurer in its underwriting operations, as distinguished from money earned or lost in the investment of assets.

2) Earned premiums less losses, loss adjustment expenses incurred and other underwriting expenses incurred.
[N049]

New for old

An expression in marine insurance which means that when repairs are made, new parts or equipment are supplied in place of old ones that have been lost or damaged. An insurance policy may stipulate that the difference between the old and new costs are either excluded or included in its coverage.
[N050]

New York Board of Fire Underwriters

An organization of companies operating in New York state, this body supervises loss adjustments and adjusters, carries on the inspection of electrical wiring throughout the state, operates the New York City Salvage Corps, and interests itself in the welfare of the business in the state.
[N051]

New York Insurance Exchange

A property-liability underwriting exchange formed in 1980, patterned after the syndicate type of operation of Lloyd's of London. The chief differences between the Exchange and Lloyd's are that the New York Exchange permits corporate as well as individual members, and their liability is limited to the amount of funds invested.

(See insurance exchanges.)
[N089]

NILS

Stands for National Insurance Laws Service, a reference work from NILS Publishing Company. This publisher specializes in tracking individual state insurance laws and regulations. The information assists insurers with complying with state insurance laws and with making filings with insurance authorities.
N.O.C.

(See Not Otherwise Classified.)
[N052]

No-fault automobile insurance

Coverage designed to compensate victims of automobile accidents via their own insurance carriers, regardless of fault and without the necessity of proving negligence on anyone's part. No-fault laws passed by different states vary greatly in their scope and application. Most provide that a victim's own insurance will allow a victim to sue in tort, once expenses or injuries have passed a stipulated threshold (monetary or otherwise).

(See Keeton-O'Connell plan and personal injury protection (PIP).)
[N079]

No-load fund

A mutual fund without a sales charge.
[N112]

Nominal damages

A negligible sum awarded to a plaintiff in an action where there is no substantial loss or injury that requires compensation (technical award) or in instances where an aggrieved party fails to present evidence to prove significant damages.
[N053]

Nonadmitted assets

Those assets of an insurance company which under state insurance laws or regulations are not recognized as assets for statutory reporting purposes, e.g., uncollected premiums over 90 days old, fixtures, etc.

(See admitted assets.)
[N099]

Nonadmitted company

If an insurer is not licensed to write insurance in a specific state, then the insurer is a nonadmitted insurer for that state.
[N054]

Nonadmitted insurance

Protection written by an insurer on a risk located in a state in which the insurer is not licensed. Such an insurer is referred to as a nonadmitted insurer.
[N055]

Nonadmitted insurer

If an insurer is not licensed to write insurance in a specific state, then the insurer is a nonadmitted insurer for that state.
[N079a]

Nonadmitted reinsurer

A reinsurer that is not licensed in a particular state or country.
[N056]

Nonassessable mutual

With respect to mutual insurers, nonassessable mutuals are those insurers that do not assess their insureds for losses experienced by the insurer that are higher than anticipated. Normally, the decision to become a nonassessable mutual is a written part of the insurer's charter or bylaws. In order to be a nonassessable mutual, the insurer must have sizable surplus to cover losses.
[N057]

Nonassessable policy

Insurance coverage in which the policyholder cannot be required to contribute in the event the insurer becomes unable to pay its losses. The large majority of policies in force in this country are nonassessable. Moreover, guaranty funds exist in most states to cover insolvency losses.

(See assessable insurance.)
[N091]

Nonbinder risk

A risk that falls outside of the classes of risk that an agent has been authorized to bind by an insurer.
[N058]

Noncancelable or noncancelable/guaranteed renewable policy

A provision in some policies (crop-hail insurance and ocean marine insurance) that neither policyholder nor insurer may terminate the contract during its term nor make changes or amendments to the provisions of the policy while it is in force.
[N080]

Noncancellable policy

Found in individual disability and individual health insurance plans. The premiums cannot be increased during the term of the policy or until a specific age has been reached.
[N100]

Noncertified act of terrorism

Any terrorist act that falls outside of the parameters described in the Terrorism Risk Insurance Act (TRIA) of 2002. Damages from such acts do not qualify for coverage under the act.
[N081]

Noncontributory plan

In a noncontributory pension plan, the employee is not required to and is not permitted to make contributions to the plan. The employer pays all contributions.

(See also contributory plan.)
Non-cumulation clause

It is a type of aggregate limit condition. It typically refers to any policy provision that is designed to restrict or limit payments for losses that arise out of a continuous condition (that itself qualifies for coverage). The clause acts to reduce the amount of coverage available by deducting previous payments made under one policy from subsequent policy terms.
[N059]

Noncurrent

The condition existing when two or more policies on a risk do not cover identically (a condition to be avoided because of difficulty in adjusting, as well as the possibility that the insured will recover less than anticipated).
[N060]

Nonduplication of benefits

Often called coordination of benefits or COB, this is a health insurance clause that prevents duplicate benefit payments. The benefits of one policy are reduced by the benefits paid in another policy.
[N060a]

Noneconomic loss (NEL)

A loss that is not monetary in nature. Nor is it based upon financial (economic) standards. For example: a person whose finger is cut off in a piece of machinery while performing that normal job will have a financial loss associated with medical costs, but a noneconomic loss also occurs resulting from the loss of use of the finger. A loss has occurred because of the reduction in the quality of the employee's life. This is a noneconomic loss.
[N061]

Nonfleet automatic

A business automobile provision that covers newly acquired vehicles by the insurer as long as the insured reports those vehicles to the insurer within a specified period of time.
[N062]

Nonforfeiture benefit

The provision in some life insurance contracts which specifies the benefits that cannot be forfeited even if premium payments are not made. These types of benefits may include the paid-up insurance value, the loan value, or the cash surrender value.
[N063]

Nonforfeiture value

A benefit to a life insurance policyholder which provides the amount of money (cash surrender value), the amount of extended term insurance, or the amount of paid-up insurance available from a life insurance policy to its owner when terminated by that person before the policy matures.
[N064]

Noninsurance

The handling of an exposure and its resultant losses through means other than insurance. Alternative methods are self-retention, alternative financing, loss prevention, elimination of the exposure or in some cases if there is no method at all, it remains uninsured. Normally, when alternative methods are used, losses are handled as business expenses.
[N082]

Nonmedical application

A life or health insurance policy that is applied for without the requirement of a medical exam. The applicant will, most probably, be required to answer health-related questions.
[N065]

Nonowned automobile liability insurance

Coverage for the policyholder against liability incurred while driving an automobile not owned or hired by the policyholder or resulting from the use of someone else's automobile on the insured's behalf, such as an employee using a personal car for the employer's business purposes. This coverage is automatically included in personal and most commercial automobile policies.
[N066]

Nonparticipating insurance

Policies which do not share in any policyholder dividends declared by the company.

(See participating insurance.)
[N067]

Nonprofit insurers

Insurers that were created to provide comprehensive, reasonably priced insurance as a service rather than to make a profit. Some jurisdictions allow tax exemptions for these organizations.
[N107]

Nonproportional reinsurance

Reinsurance in which the reinsurer's response to a loss depends on the size of the loss rather than to its proportion to the underlying policy limits.
[N068]

Nonrecording chattel mortgage policy

An insurance contract protecting a lender (usually a bank or small loan company) from loss arising from not having recorded a mortgage given as security for a loan. With such a policy, time and expense to record numerous mortgages are avoided.

(See errors and omissions insurance.)
[N068a]

Nonrenewal

When an insurer chooses not to provide an additional period of policy coverage due to poor loss experience; a decision to stop offering a type of coverage, or other reason (as long as the reason complies with applicable state law).
[N068b]

Nonrenewal laws

When an insurer chooses not to offer to renew a policy, the insurer must comply with state regulation regarding the reasons which are permitted for nonrenewal, the type of notice that must be sent and to whom regarding the nonrenewal and the amount of time that must be given the insured prior to the cessation of coverage.
[N069]

Nonresident agent

Insurance agents must be licensed in each state where they write business. When an agent is domiciled in one state but also writes business in another, the agent is considered a nonresident in all states except the state of domicile.
[N070]

Nonsmoker discount

Because of the data and statistics available showing that non-tobacco users have fewer health problems, credits are offered in some life and health insurance programs for those insureds who commit to not using tobacco products.
[N070a]

Nonstandard insurance

Insurance coverages that are outside those considered "standard" with respect to the coverages, forms and endorsements provided. Standard insurance is those policies and forms that share common policy language and verbiage as well as same or similar clauses and provisions.

Standard also refers to business types and the exposures that the business represents. Businesses that pose only commonly expected exposures are considered standard while businesses that pose unique, unusually or very high exposures are considered nonstandard and thus require nonstandard insurance.
[N070b]

Nonvalued policy

A policy which when written does not state the amount to be paid is not valued. Most property policies are nonvalued--a maximum amount available is shown but the amount of any one claim or loss is not (unless total).
[N071]

Nonwaiver agreement

A signed agreement in which the insured stipulates that the continuance of a loss adjustment process by the insurer shall not be construed as an admission of liability by the insurer. Used when there are substantial questions as to the amount of the claim or whether the policy affords coverage at all.

(See without prejudice.)
[N083]

Normal retirement age

In a pension plan, the age at which a person can retire and receive full benefits, i.e., age 65.
[N092]

North American Free Trade Agreement (NAFTA)

This is a historic agreement between Canada, Mexico and the U.S. Briefly, the agreement’s purpose is to foster regulations, procedures and working groups to facilitate the flow of goods, services and resources between the countries including more regulatory uniformity.
[N093]

North American Industry Classification System (NAICS)

This is replacing the U.S. Standard Industrial Classification (SIC) system. NAICS was developed jointly by the U.S., Canada, and Mexico to provide new comparability in statistics about business activity across North America.
Not Elsewhere Classified

Another term for Not Otherwise Classified, it refers to any category of business that has not been assigned a specific code under the standard industrial classification.
Not Otherwise Classified

This term refers to any category of business that has not been assigned a specific code under the standard industrial classification.
[N071a]

Not taken

Policies applied for and issued, but rejected and not paid for by the proposed insured.
[N101]

Notary public bond

A bond that a state requires to handle losses created by notary mistakes.
[N072]

Notice of loss

The notice submitted by an insured to the insurer regarding the occurrence of a loss. Policy conditions specify how long the insured has to notify the insurer of the loss, in what format, and the information the loss notice must contain.
[N073]

Notice of occurrence

The notice of the occurrence of a loss that must be submitted by an insured to the insurer in a liability contract. Policy conditions specify when the insured should notify the insurer of the loss, in what format, and the information the notice should contain.
[N073a]

Notice to company

Written notice to an insurer of the occurrence of an event which may result in a claim or loss.
[N094]

NRRA (See National Risk Retention Association.)

A trade group form by purchasing groups (PGs) and risk retention groups (RRGs). Headquarters: Minneapolis, MN.
[N074]

Nuclear Energy Insurance Association

A pool or association of insurers who have combined to provide nuclear energy liability insurance.

(See nuclear energy liability insurance.)
[N075]

Nuclear energy liability insurance

Specialty insurance coverage designed to offer liability protection for third-party bodily injury and property damage losses that may occur as a result of the insured's ownership, use or transport of nuclear material. This type of loss is normally excluded by most standard liability policies, thus the need for specialty protection.

(See nuclear energy insurance association.)
[N075a]

Nuisance value

An amount that an insurer will pay to settle a claim not because it is a valid claim or covered by the policy contract, but because the insurer considers it worth that amount to settle and close.
[N076]

Numerical rating system

A system used in the underwriting of a risk, where numerical values are assigned to the attributes of the risk to assist the underwriter in evaluating the acceptability of the risk. Once the sum of the numerical values is calculated, the risk is classed into the appropriate acceptability category based on the final value. Categories range from highly desirable to unacceptable.
[N102]

Numismatic property

Refers to coins, medals, tokens and similar property.
Nurse case manager

A case manager acts as a bridge between an injured person and all of that person’s health-care providers. He or she assists in coordinating care, handling information, making inquiries, and creating a health care program or plan on behalf of an ill or injured person or his or her family.
[N077]

Nursing home professional liability policy

Protects a nursing home against claims for injury resulting from negligence of the nursing home staff.
[N103]

Nursing liability

A policy that protects against being held legally liable for loss or damage that arises out of the insured's nursing duties. A form of professional liability.