Glossary of Insurance Terms
Printed with permission from the Insurance Institute of Canada.
Please choose a letter to continue:
Named Insured
Named Peril Policy
Natural Disaster
Negligence
No Fault
Non-combustible
Non-disclosure
Non-insurable Risk
Non-owned Automobile Insurance
Non-valued Policy
Notary Public
Notice of Loss
Notice of Termination
Null and Void
Named
Insured
The person or party designated in the policy as the
insured, as opposed to someone who may be covered by the
policy, but is not specifically named.
Named Peril Policy
A policy in which the perils insured against are listed,
as opposed to one which insures against "all
risks."
Natural Disaster
A disaster caused by the elements such as flood,
earthquake, tornado, lightning, etc.
Negligence
Failure to use the degree of care expected from a
reasonable and prudent person.
No Fault
The term used to describe a system for improving the
compensatory process for automobile accident victims by
eliminating costly and lengthy litigation. Simply it
means paying certain claims without reference to who was
at fault.
Non-combustible
Materials, no part of which will ignite and burn when
subjected to fire.
Non-disclosure
A contract of insurance is based on utmost good faith. An
applicant for insurance is required to disclose to the
company all material facts which are necessary to
underwrite a policy. If the applicant does not disclose
all these facts, he/ she is guilty of non-disclosure and
may risk having coverage voided from inception.
Non-insurable Risk
A risk for which no insurance can be written. The chance
of loss is very high or cannot be accurately measured.
Non-owned
Automobile Insurance
A policy which protects the insured against third party
claims arising out of some other person using their own
vehicle in the business of the insured.
Non-valued Policy
A policy is valued when it promises to pay its face value
in case of total destruction, irrespective of the value
of the insured property. In other words, the value is
agreed upon in advance. Used only for certain classes of
property such as fine arts or ocean marine. Ordinary
policies do not contain agreement and are therefore
"non-valued."
Notary Public
A person (usually a lawyer) appointed by the provincial
Lieutenant-Governor with the power of drawing and keeping
Deeds and of attesting protests of dishonoured negotiable
instruments. This person is also a Commissioner of Oaths
before whom affidavits are sworn.
Notice of Loss
The conditions of the insurance policy require that any
person sustaining a loss insured by the policy shall
immediately give notice to the company of such loss.
Failure to give notice as required has been held to be a
bar against recovery. The notice is required to be in
writing, and verbal notice to the agent or broker will
not be sufficient to comply with the condition.
Notice of
Termination
The conditions of insurance policies stipulate how a
policy may be terminated during its term. For example, a
policy may be terminated by the insured at any time or by
the insurer who must give the insured a certain number of
days' notice of termination by registered mail or a
certain lesser number of days' written notice of
termination personally delivered.
