For informational purposes only. Refer to your policy or ask your agent
for the exact definition of any term defined in your policy.
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David G. Sayles Insurance Services 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. See also: Basic Form, Special Risk Insurance. | |
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National Association of Insurance Commissioners (NAIC): The association of insurance commissioners of various states formed to promote national uniformity in the regulation of insurance. | |
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Negligence: Failure to use the care that a reasonable and prudent person would have used under the same or similar circumstances. | |
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Net Premium: (1) The portion of the premium rate which is designed to cover benefits of the policy, but not expenses, contingencies, or profit. (2)The portion of the premium remitted to the home office by an agent after deduction of the agent's commission. (3) Net written premium. | |
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Net Present Value: The value today of an asset to be received in the future, either as a single payment or a series of payments (such as an annuity). The value is considered to be different if received at a later date because of the time value of money. | |
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Net Written Premiums: Premium income retained by insurance companies, directly or through reinsurance, after payments made for reinsurance. | |
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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. | |
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Non-Admitted Insurance Company: An insurance company not licensed to do business in a particular state; such a company may sell excess and surplus insurance in the state if admitted insurers decline to write a risk. | |
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Noncancellable: A clause stating that the Insured has the right to continue a policy in force by the timely payments of premiums set forth in the contract for some extended period of time specified, 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. | |
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Nonconfining Sickness: A sickness that disables the insured person but does not confine him to his home or a hospital. | |
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Noncontributory: A term applied to employee benefit plans under which the employer bears the full cost of the benefits for the employees. Generally, under noncontributory policies one hundred percent of the eligible employees must be insured. | |
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Nondisabling Injury: An injury which may require medical care, but does not result in loss of working time or income. | |
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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. | |
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Nonforfeiture Option: One of the choices available in many Life Insurance policies 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. | |
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Nonmedical Limit: The maximum face value of a policy that a given company will issue without the applicant taking a medical examination. | |
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Nonoccupational Disability 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. | |
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Nonparticipating Insurance: Plan of insurance under which the policyholder is not entitled to share in the dividend distribution of the company. | |
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Nonparticipating Policy: A Life Insurance policy, generally issued only by mutual insurance companies, in which the company does not distribute to policyholders any part of its surplus. Premiums for nonparticipating polices are usually initially lower than for comparable participating polices, but premiums can be varied. 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. (See also: Participating policy) | |
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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. |
Copyright 1998 David G. Sayles Insurance Services
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