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Insurance Glossary. The Letter N
Building Insurance, in fact insurance in general is an
enormously complex subject. Often you will encounter words that you
are unfamiliar with, we have provided a list of some of the most
popular terms and hope that they will prove useful to you.
Simply Click on the Letter Below to be Taken to your Page.
National Brokers
- Intermediaries with a national presence,
whose clients are often corporate bodies and have departments
specialising in different sectors of the market.
Negligence -
Perhaps the most common form of tort. In Blyth v
Birmingham Waterworks Co. (1856) it was defined as 'the omission
to do something which a reasonable man guided by those
considerations which ordinarily regulate the conduct of human
affairs would do, or doing something which a prudent and
reasonable man would not do'. Gives rise to civil liability.
Net Assets -
The excess of an insurer’s assets over its
liabilities.
Net Premium
- A premium net of reinsurance ceded but gross of
commission, and excluding premium tax.
Net Relevant Earnings -
Are used to determine the maximum
contributions to a Retirement Annuity or Personal Pension.
New-For-Old
-
Cover
for property where an item lost or destroyed would be replaced
with a brand new one, with no deduction for wear and tear. Also
called Replacement-as-New.
No Claim Discount (or Bonus) -
A reduction in a renewal
premium to reflect a claim-free record; used most often in motor
insurance.
Non-comprehensive Cover -
A policy covering a limited number
of types of loss or damage. The term is mainly used in motor
insurance, where a vehicle may have RTA cover – the minimum
cover provided by the Road Traffic Act; third party cover, which
indemnifies the policyholder for damage caused to other people’s
property and injury that may be caused to others; or third
party, fire and/or theft cover which additionally provides
compensation to the policyholder if the insured vehicle is
destroyed or damaged by fire and/or theft.
Non-Disclosure
- Where you or anyone acting for you, fails to
state a material fact when applying for insurance.
Non-Linked
- Life
insurance policies that are non-linked receive their investment
income in the form of "bonuses", paid out of the total
income earned by the insurance company on its pooled fund, and
are also known as "with-profits". The value of the
saver’s fund thus depends on the amount he/she has bought and
the amount of bonuses added. Once added, bonuses cannot be taken
away, making these policies generally less volatile than linked
policies.
Non-proportional Treaty Reinsurance
-
This relates to the
whole of a certain class of business and is a way of limiting
the loss made by the ceding office.
Not Contracted-out -
Someone who is not contracted out of the
State Earnings-Related Pension.
Copyright Building-insurance-uk.co.uk 2008
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