NAMED PERIL POLICY
The insurance contract under which covered perils are listed. Benefits for a covered loss are paid to the policy-owner. If an unlisted peril strikes, no benefits are paid.
NATURAL AND PROBABLE CONSEQUENCES
Consequences from a given act that a reasonable person could foresee.
NEGATIVE TREND
With respect to a life and/or health insurer, negative trend over a period of time, as determined in accordance with the “Trend Test Calculation” included in the RBC instructions
NEW FOR OLD
A form of cover where insurers agree to pay for the cost of property lost or destroyed without making any deduction for depreciation. This means that a claim is settled on the basis of replacing the property as new, even though the old preperty that had been destroyed was probably not new and its value had therefore reduced. The sum insured must however reflect the full value of the property insured as new
NO CLAIMS BONUS / DISCOUNT
A rebate of premium given to an insured by an insurer when no claims have been made. Very common in motor insurance
NON DISCLOSURE
The failure by a policyholder (or broker) to disclose to an insurer a material fact
NUISANCE
The use of land or property in such an unreasonable, excessive or unnecessary way as to cause tangible inconvenience or discomfort to a neighbour. Not normally insurable
NULL AND VOID
Not in force or not legally binding