Named Insured -
The
person designated in the policy as the insured, as opposed to
someone who may have an interest in a policy but is not
specifically named. Usually includes a spouse, if a resident
of the same household.
Negligence -
The
failure to exercise reasonable care. It is equivalent to
carelessness or lack of proper care. This is the basis of
legal liability.
No-fault -
An
insurance system where your own insurance pays for your
injuries regardless of who caused the accident.
Non-renewal -
When
an insurer decides not to renew a policy at the end of its
policy period..
Nonadmitted Insurer - An insurer not licensed
to do business in the jurisdiction in question. Same as
Unauthorized Insurer and Unlicensed Insurer.
Nonassessable Policy - A
policy for which the policy owner pays a set premium. No
additional premiums or amounts can be assessed. These are
issued primarily by stock insurers, but can also be issued by
mutual insurers who qualify to do so by meeting certain
standards under state laws.
Net
Premium - (1) The amount of premium minus the
agent's commission. (2) The premium necessary to cover only
anticipated losses, before loading to cover other expenses.
(3) The original premium minus dividends paid or anticipated
in participating Life Insurance when the insured elects to use
his dividends toward payment of the premiums. Contrast with
Gross Premium.
National
Association of Insurance Brokers, Inc. (NAIB) - A
voluntary association of insurance brokers which exists to
exchange information and make recommendations to state
legislatures.
National
Association of Insurance Commissioners (NAIC) -
Originally National Convention of Insurance Commissioners. An
association of state insurance commissioners formed for the
purpose of exchanging information and of developing uniformity
in the regulatory practices of the several states through
drafting model legislation and regulations. The NAIC has no
official power to enforce compliance with its recommendations.
National Association of
Mutual Insurance Companies (NAMIC) - A voluntary
intercompany organization of Mutual Property and Liability
insurers formed for the exchange of information and
discussion.
National
Association of Securities Dealers (NASD) - A
voluntary association of brokers and securities dealers
handling over-the-counter securities. It serves a
quasi-official function in the regulation of licensing and
also acts as a bureau which formulates rates, rating plans and
policy wording for about half of the states. Many other states
subscribe to the various services it provides. It is supported
by the insurance companies which belong to it.
NO-FAULT - Auto insurance coverage that pays
for each driver’s own injuries, regardless of who caused
the accident. No-fault varies from state to state. It also
refers to an auto liability insurance system that restricts
lawsuits to serious cases. Such policies are designed to
promote faster reimbursement and to reduce litigation.
NO-FAULT MEDICAL -
A type of accident coverage in homeowners policies.
NO-PAY, NO-PLAY - The
idea that people who don’t buy coverage should not
receive benefits. Prohibits uninsured drivers from collecting
damages from insured drivers. In most states with this law,
uninsured drivers may not sue for noneconomic damages such as
pain and suffering. In other states, uninsured drivers are
required to pay the equivalent of a large deductible ($10,000)
before they can sue for property damages and another large
deductible before they can sue for bodily harm.
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