NAMED INSURED – The first person in whose name the insurance policy is issued.

NAMED PERILS – Named perils are the specific dangers a policy insures you against – such as fire, windstorm, and hail in a homeowner's policy, for example. These perils are "named" or listed in the policy.

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

NEGOTIABLE INSTRUMENT – A document of value which is negotiable, it can be endorsed to give another party to another party beneficial rights.

NEW FOR OLD – An agreement by an Insurer not to subtract amounts for depreciation or wear & tear from a claim presented for replacement ‘as new’ of insured property damaged or destroyed.

NO-FAULT INSURANCE – No-fault insurance is designed to speed up claims payments to accident victims and to lower the cost of auto insurance by reducing the number of lawsuits for minor claims. Under no-fault insurance, a person's own Insurance Company pays for financial losses like medical expenses and lost wages due to an accident, regardless of who caused it. (In a fault system, your expenses won't be paid by the other party's Insurance Company until he or she has been proved negligent.) In exchange, the right to sue may be restricted in some cases.

NON-ADMITTED INSURER – An insurance company which is not licenced to insure business in a country, state or territory.

NON-DISCLOSURE – The failure of either party to an insurance contract, to reveal to the other, any material fact or circumstance which is known or should be known to either. The offended party may avoid the contract.


NOTICE OF ABANDONMENT – Notice which is a condition precedent to a claim for constructive total loss of hull or cargo in marine insurance.

NOTICE OF CANCELLATION – A clause in an insurance contract which grants either party the right to cancel the insurance giving the required notice in writing. A refund of premium is normally given to the Insured.