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NAMED (SPECIFIED) PERILS

The specific exposures to loss listed in the policy for which, if determined to be the proximate cause of the loss, the -company agrees to indemnify the insured. (See All-Risk)

NAMED INSURED

The person or the (see) entity specifically named in the policy (as opposed to a party having an interest, such as a mortgagee) as the insured. Depending on the type of insurance, "named insured" may be extended to spouse (automobile) resident in the same household, and even to all relatives in the insured’s household without age restriction, and even to non-related persons under age 21. (See Automobile, Comprehensive Personal Liability and Homeowners Policy Section II)

NAMED NON-OWNER POLICY

A form of automobile liability insurance written for an individual who does not own an automobile. It covers the named insured and spouse (if resident in the same household) for liability for accidents occurring while driving any automobile not owned by either party or by a member of his or her household. The named non-owner policy is excess over any other insurance available to the insured.

NEGLIGENCE

The law imposes a duty on every person to exercise reasonable care with respect to his own acts and to the maintenance of his own property so as not to cause injury to other persons or damage their property. Failure to exercise such reasonable care constitutes Negligence. The burden of proof of negligence lies with the injured party with few exceptions.

In theory, one who charges another of being guilty of negligence must himself be completely free of blame. Any degree of blame on the part of the injured party is called Contributory Negligence, which (again in theory) act to void his claim for recovery of damages. In actual practice, however, such is not the case. In some jurisdictions, the very harshness of the concept of Contributory Negligence, wherein the injured party receives no compensation for injuries or damages, the doctrine of Comparative Negligence has been introduced, wherein an attempt is made to determine the degree of negligence (blame) of both parties which allows partial recovery by the injured party.

In all cases involving a charge of negligence, intent to harm must be absent. Where intent to harm is present, the action, if substantiated, then becomes a crime which is a wrong against the state and punishable by fine and/or imprisonment.

The degree of reasonable and prudent care required to avoid a judgment on a charge of negligence varies as to the relationship between the parties involved: employer to employee; manufacturer and retailer to the general public; bailees to bailors; owners and tenants to the general public, etc.

Volumes have been written on the subject of negligence and its ramifications. Some of the latter are determined by Common Law (based on the court decisions handed down by the years representing precedent) and Statutory Law covering certain situations (employer-employee relationships resulting in Worker’s Compensation, for example) which has been enacted into law by legislative bodies having jurisdiction. (See also Torts, Common Law, Statutory Law, Res Ipsa Loquitor.)

NEGOTIABLE INSTRUMENT

(Also known as "Commercial Paper".) A document of value (meaning measurable in terms of money) which is transferable from one person to another by endorsement, assignment or delivery. Checks, drafts, bills of exchange, notes, and some bonds and securities. (See Stale Check, Draft.)

NO-FAULT AUTOMOBILE INSURANCE

A system of automobile insurance (patterned roughly after Worker’s Compensation) designed to eliminate the time-consuming, inexact, expensive and often impossible task of determining negligence (fault) in the event of an automobile accident.

Ideally, No-Fault would work something like this: If you become involved in an accident, the determination of fault as a factor would be eliminated. Your own insurance company would pay for expenses incurred by you, and the other party’s insurance would pay for his injuries and/or damages. There would be no blame to fix, no investigation, no lawyers, no courts and no delays in receiving compensation.

Total ("Pure") No-Fault would pay all economic losses to all insured parties without regard to fault. There would be no limits to the total amount of benefits, and there would be no delays and no law suits.

The standard tort liability system (meaning the one at fault has to pay for damages he caused) seems to be equitable enough, yet not only does the party to blame not pay (his insurance company and all who pay premiums pick up the tab), but the system has turned into a very expensive method of making settlements which is often slow and frequently unfair. In addition, it is expensive out of all proportion to the benefits paid.

Figures show that under the present compensation system where an economic loss is $500 or less, four and one half times that amount is paid out in settlement. Conversely, where the economic loss is $25,000 or more, settlements amount to one third of the real economic loss. Only about forty-five cents out of each premium dollar is paid out in actual benefits. (Figures are from U.S. Department of Transportation study.)

Objections put forward by opponents of No-Fault are directed mainly at the reduction or elimination of the injured party’s right to recovery in the courts, thereby violating his constitutional rights. Several judicial bodies have declared the system constitutional.

A number of No-Fault plans have been enacted into law, or are about to be adopted by many states. All of these have set various limits ("thresholds") of economic loss and other losses, providing that if these limits are reached or exceeded, injured parties may resort to courts. Most of these "thresholds" are quite low.

In order to be effective, No-Fault state laws must eventually conform to the same general standards.

NON-ADMITTED INSURANCE COMPANY

An insurance company which is not licensed in a particular state or country, is termed "non-admitted" in that state or country. Insurance may be obtained from these companies however, under the following conditions:

1) when the needed coverage is not available from either the voluntary or the residual market (and the agent has done everything he can do to accomplish this, and)

2) the insurance is placed with the non-admitted company only through a state licensed "excess" or "surplus lines" broker.

NON-ASSESSABLE POLICIES

See Mutual Insurance Company.

NON-CONCURRENCY

See Concurrent Insurance.

NON-IMPACT PRINTER

See Printer.

NON-OWNERSHIP LIABILITY-AUTOMOBILE

The liability of persons or organizations by reason of the operation for their interest of automobiles which they do not own. For example, an employer who has salesmen who operate their own automobiles in pursuit of the company’s business may be held jointly or solely liable in the event of an accident during such pursuit. An Automobile Non-Ownership Liability Policy may be issued to cover the interest of the employer or organization for this exposure. (See also Named Non-Owner Policy and Hired Car Policy.)

NON-WAIVER AGREEMENT

An agreement between the insured and the insurance company after a loss, whereby it is agreed that the investigation or appraisal of damages shall not be construed as an admission of liability on the part of either party.

NOTICE OF CANCELLATION

See Cancellation.

NOTICE OF LOSS

See Loss Report.

NOTICE OF NON-RENEWAL

Written notice issued by company to insured (with copy to agent) of its intention not to renew a policy. Same notice may be issued by agent (with copy to company). When required, notice must be given a specified number of days in advance of expiration date.

NUCLEAR HAZARDS CLAUSE

Specifically excludes loss caused by nuclear hazards explosion (accidental or otherwise) from any source, except fire resulting from such an occurrence is covered.

NUMISMATIC PROPERTY

Coins and medals and collections thereof.