General

NAIA.
See National Association of Insurance Agents, Inc. and Independent Insurance Agents of America.

NAIB.
See National Association of Insurance Brokers, Inc.

NAIC.
See National Association of Insurance Commissioners.

NAII.
See National Association of Independent Insurers.

NAIW.
National Association of Insurance Women.

NAMIC.
See National Association Of Mutual Insurance Companies.

NAPIA.
National Association of Professional Insurance Agents.

NASD.
See National Association of Securities Dealers.

NFIA.
National Flood Insurers Association.

NFPA.
National Fire Protection.

Named Insured.
Any person, firm, or corporation, or any member thereof, specifically designated by name as the insured(s) in a policy. Others may be protected as insureds even though their names do not appear on the policy. A common application of this latter principle is in Automobile policies where, under the definition of insured, protection is extended to cover other drivers using the car with the permission of the named insured.

National Association of Independent Insurers (NAII).
An association comprised of Fire, Casualty, and Surety insurers which do not belong to large rating bureaus. The association distributes considerable information about legislation and litigation.

National Association of Insurance Agents, Inc.
(NAIA). The former name of the Independent Insurance Agents of America. See the listing under this name.

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.

National Auto Theft Bureau.
An organization engaged in the prevention and reduction of motor vehicle fire and theft losses.

National Convention of Insurance Commissioners.
See National Association of Insurance Commissioners.

National Insurance Association, Inc.
An intercompany association of insurers formed to exchange information and ideas on common problems unique to the black community.

National Safety Council.
A nonprofit organization chartered by Congress in 1913. It is made up of approximately 12,000 industry members nationwide. The purpose of the council is the dissemination of safety education material.

Natural Death.
Death by means other than accident or homicide.

Negligence.
Failure to use that degree of care which an ordinary person of reasonable prudence would use under the given or similar circumstances. A person may be negligent by acts of omission or commission or both.

Net Interest Earned.
The average interest earned by an insurer on its investments after investment expense but before federal income taxes.

Net Loss.
The amount of loss sustained by an insurer after giving effect to all applicable reinsurance, salvage, and subrogation recoveries.

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.

Net Retained Line.
See Net Line.

Net Retention.
The amount of insurance that a ceding company keeps for its own account and does not reinsure.

New For Old.
Replacing old damaged parts or equipment with new ones rather than repairing them.

Nonadmitted Assets.
Assets that do not qualify under state law for insurance statement purposes. Examples would be furniture, fixtures, agents' debit balances, and accounts receivable which are over ninety days old.

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.

Nonassignable.
A policy that the owner cannot assign to a third party. Most policies are nonassignable unless approval is given by the insurer.

Noninsurable Risk.
A risk that cannot be measured actuarially or in which the chance of loss is so high that insurance cannot be written against it.

Noninsurance.
Making no financial preparation for meeting losses.

Nonparticipating (Non-Par).
Insurance contrasts on which no policy dividends are paid because there is no contractual provision for the policy owner to participate in the surplus. Contrast with Participating.

Nonrenewal.
Termination of insurance coverage at an expiration date or anniversary date. This action may be taken by an insurer who refuses to renew, or by an insured who rejects a renewal offer.

Nonresident Agent.
An agent licensed in a state in which he does not live.

Notice of Cancellation.
Written notice by an insurer of intent to cancel insurance, or written notice by an insured requesting cancellation.

Notice of Loss.
Notice to an insurer that a loss has occurred. Notice of loss is a condition of most policies, and it is frequently required within a given time and in a particular manner.

Nonvalued Policy.
A policy that is not valued; that is, when the policy is written, the amount to be paid in the event of a loss is not stated. Most property policies are nonvalued.

Not Taken.
Policies applied for and issued but rejected by the proposed owner and not paid for.

Notice To Company.
Written notice to an insurer of the occurrence of an event which a claim is to be based.

Nuisance Value.
An amount that an insurance company will pay to settle a claim not because it is a valid claim but because the company considers it worth that amount to dispose of it.