Glossary
Insurance Terms Glossary
This page provides a glossary of insurance terms and definitions that are commonly used in the insurance business. New terms will be added to the glossary over time.
The definitions in this glossary are developed by the NAIC Research and Actuarial Department staff based on various insurance references. These definitions represent a common or general use of the term. Some words and/or phrases may be defined differently by other entities, or used in a context such that the definition shown may not be applicable.
Terms beginning with N
- Named Insured
- – the individual defined as the insured in the policy contract
- Named Peril Coverage
- – insurance for losses explicitly defined in the policy contract.
- National Association of Insurance Commissioners (NAIC)
- – the U.S. standard-setting and regulatory support organization created and governed by the chief insurance regulators from the 50 states, the District of Columbia and five U.S. territories.
- Negligence
- – failure to exercise reasonable consideration resulting in loss or damage to oneself or others.
- Net Admitted Assets
- – total revenues from an insurer's operations less total expenses and income taxes
- Net Premiums Earned
- – premiums on property/casualty or health policies that will not have to be returned to the policyholder if the policy is cancelled.
- NFIP – National Flood Insurance Program
- – flood insurance and floodplain management for personal and business property administered under the National Flood Act of 1968.
- Nonadmitted Assets
- – assets having economic value other than those which can be used to fulfill policyholder obligations.
- Nonadmitted Insurer
- – insurance company not licensed to do business within a given state.
- Non-proportional Reinsurance
- – reinsurance that is not secured on individual lives for specific individual amount of reinsurance, but rather reinsurance that protects the ceding company's overall experience on its entire portfolio of business.
- Nuclear Energy Liability
- – coverage for bodily injury and property damage liability resulting from the nuclear energy material on the insured business's premises or in transit.
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