Life Insurance and Life Settlement Glossary - N

Life Insurance and Life Settlement Terms - N

National Association of Insurance Commissioners (NAIC)

In the United States, an association of state insurance commissioners designed to uphold consistent insurance regulation.

National Association of Securities Dealers (NASD)

A voluntary association of securities firms empowered by the Maloney Act of 1938 to control the affairs of securities firms and to promote fair and ethical practices in the securities business.

Named Peril

Danger specifically mentioned as covered in an insurance policy.

National Flood Insurance Program

Federal government-sponsored program under which flood insurance is sold to houseowners and businesses.

Net annuity Cost

A monetary um equal to the present value of future periodic payments under an annuity contract, calculated on a net basis, without any exact provision for expense loading.

Net Payment Cost Comparison Index

A cost comparison index used to contrast life insurance policies that takes into account the time value of money and that takes into consideration the cost of a policy over a 10- or 20-year period assuming the policy owner pays premiums over the whole period.

Net Premiums Written

The entirety premiums on all policies written by an insurer during a stated period of time, regardless of what portions have been earned.

Needs Analysis

Fraction of the fact-finding stage in the personal selling process; the method of developing a detailed personal and financial picture of a prospect in order to calculate his or her insurance needs.

Noncontributory Group Insurance

A group insurance plan in which the insured disburse no portion of the premium for their insurance. The group policyholder pays the complete premium.

Nonforfeiture Factors

Special values, alike to annual premiums, that some insurers use to compute their policies’ cash values. Each insurer calculates its own nonforfeiture factor.

Nonforfeiture Option

A variety of ways in which a policyowner may apply the cash value of a life insurance policy if the policy lapses.


Auto insurance coverage that pays for every driver’s own injuries, regardless of who caused the accident. No-fault differs from state to state.

No-Fault Medical

A type of accident coverage in houseowners policies.

No-Pay No-Play

The idea that people who don’t purchase coverage should not receive benefits. Prohibits uninsured drivers from accumulating damages from insured drivers.

Non-Admitted Assets

Assets that are not incorporated on the balance sheet of an insurance firm including furniture, fixtures, past-due accounts receivable, and agents’ debt balances.

Non-Admitted Insurer

Insurers licensed in few states, but not others.

Noncancellable & Guarenteed Renewable Policy

An individual health insurance policy, which stipulates that, until the insured reaches a particular age (usually age 65), the insurer will not terminate the coverage, augment the premiums, or change the policy provisions as long as the premiums are paid when due.

Notice Of Loss

A written notice needed by insurance companies immediately after an accident or other loss.

Nuclear Insurance

Covers operators of nuclear reactors and other facilities for liability and property damage in the case of a nuclear accident and involves together private insurers and the federal government.

Nursing Home Insurance

A type of long-term care policy that covers a policyholder’s stay in a nursing facility.