Nail to nail

Term used in transit insurance on paintings to denote that the cover operates from the time the object insured is removed from the wall-fastening for transit until it is fastened to the wall at its specified destination.


An underwriting member of Lloyd's in whose name a share of an insurance is accepted by an underwriter acting on behalf of a syndicate.

Name limit

The maximum amount that a fire insurer is prepared to retain on insurances of a single insured in respect of goods at a particular location such as a warehouse or furniture depository, the balance being reinsurable under a surplus treaty.

Named policy

A marine cargo policy in which the vessel carrying the cargo is named.

Named steamer

Term used when the underwriters of a marine open cover stipulate that the cover will operate only provided they are advised of and approve the carrying vessel before each declaration attaches.


A précis of policy details.

National insurance

The extensive scheme of social insurance that operates in the United Kingdom, providing benefits for retirement, sickness, unemployment, industrial injury, maternity and death.

Natural justice

Considerations to be observed by anyone adjudicating on the rights of others, such as acting fairly, in good faith and without bias, and giving each party the right to state his case.

Natural premium

In life assurance, the premium for the risk of death occurring within one year.

Natural premium method

Life assurance under which the premium for any year is governed by the risk of death occurring within that year.

Navigation clause

A clause in a marine hull policy excluding certain risks such as paid towage or salvage work or being towed except where customary or, to a limited extent, when in need of assistance.

Navigation risks

The risks incidental to a vessel navigating or at sea, as opposed to those arising while the vessel is in port or laid up.


The omission to do something which a reasonable man, guided upon those considerations which ordinarily regulate the conduct of human affairs, would do, or doing something which a prudent and reasonable man would not do. It consists in a failure to exercise due care in a case in which a duty to take good care exists. It is a tort giving rise to civil liability.

Negotiable instrument

A document of title to property that may be transferred from one person to another in the course of business.

Net absolute(ly)

Term used in marine insurance to emphasise that all discounts, without exception, have been taken off a premium / Term used in facultative aviation reinsurance when no reinsurance commission is allowable.

Net earned premiums

The premiums received or due to an insurer less the cost of reinsurance and after adjustment to allow for the cost of any unexpired risk.

Net line

The amount of liability under a line of insurance that is retained by an insurer after cession by way of reinsurance.

Net premium

The premium after discounts have been taken off. Term variously used to describe gross premiums (less return premiums) net of (a) reinsurance premiums payable, or (b) commission, or both (a) and (b). In life assurance valuation a hypothetical premium calculated as sufficient to secure the guaranteed benefits on the valuation bases of mortality and interest, but without allowance for commission, expenses or bonus.

Net retained brokerage

Brokerage retained by a broker after deduction of allowances to third parties.

Net retained line

Same as Net line.

Net value

See Damaged value.

Net written premiums

The premiums received or due to an insurer less the cost of reinsurance but without allowance being made for the cost of any unexpired risk.

Net yield

The yield on an investment after deduction of tax payable on the interest or dividend, or of the expenses of management in the case of property.

New business

New insurances as opposed to renewal of existing insurances.

New business inspector

Same as Inspector.

New business strain

In life assurance the reserve necessary for a new policy effected at an annual premium is likely to exceed the first premium after allowance for expenses, including commission, that are incurred at the outset. Writing new business, therefore, imposes a strain on the company's reserves.

New for old

A basis for property insurance on, e.g., household contents when the insurer agrees to pay the replacement cost of property lost or destroyed, without a deduction for depreciation. By the Marine Insurance Act 1906 s.69 (l), insurers, in settling a claim for repairs to a ship, are entitled to make "the customary deductions" unless the policy expressly provides to the contrary. The customary deduction for new work in place of old is one-third the cost of repairs, with certain exceptions, e.g., for the ship's first voyage. In practice insurers waive their right but the waiver does not apply to allowances made in a general average adjustment.

No claim for accident reported

Where a marine insurance is accepted after the risk has attached and an accident to the vessel has already been reported the insurer may stipulate that there shall be no claim under the policy for it.

No claims return

A return of premium on a marine insurance policy on which no claim has been made.

No cure no pay

Where, in a marine venture, property is salved, the salvor becomes entitled to a salvage award based on the value saved. If nothing is saved there is no award.

No-claim bonus

Same as No-claim discount.

No-claim discount

A discount allowed from a renewal premium in consideration of there having been no claim paid or payable in the previous year of insurance. The use of no-claim discounts is widespread in U.K. motor insurance. Most are granted on a scale that rises with the number of consecutive claim-free years.

No-fault liability

Liability to pay compensation for bodily injury or, sometimes, damage to property, without regard to the question whether any party caused the loss by a wrongful act or omission.

Nominal value

The value stated on the face of a security. A token value.


A member of a friendly society may nominate a person to receive benefits payable on the member's death, up to certain limits of amount, and the society must pay the nominee. The nomination can be revoked and is automatically revoked by the member's marriage. (Friendly Societies Act 1974, ss. 66-69 and Administration of Estates (Small Payments) (Increase of Limit) Order 1975).

Non-admitted company

An insurance company not admitted to do business in a state (U.S.).

Non-admitted reinsurance

In the U.S.A., where an insurance company has placed reinsurance with a reinsurer who is not authorised to transact the business in the jurisdiction of a state, the reinsurance is termed non-admitted and the company cannot take credit for it in its statutory return.

Non-apportionable annuity

An annuity which ceases with the last periodical payment before death.


A condition in a pension scheme that a member may not give or sell his right to benefit or pledge it as security for a loan.

Non-average policy

A policy free of any conditions of average.

Non-cancellable policy

An insurance contract that may not be cancelled by one or both parties. The term is usually applied to contracts which do not provide for cancellation by the insurer.

Non-cash advice

A preliminary advice to an underwriter about a premium or claim.

Non-concurrent insurances

Two or more insurances that cover some property in common though one or more covers (a) part only of the property covered by the other(s) or (b) property not covered by the other(s).

Non-contribution clause

A clause in a contract of indemnity which seeks to provide that in the event of another insurance covering a claim the insurers with the non-contribution clause shall not be required to contribute to settlement of the claim.

Non-contributory pension scheme

A pension scheme in which the employees make no contributions towards the cost of the scheme.


The failure of a whole cargo or a whole package to arrive at its destination, in contrast with short delivery (q.v.).


Innocent omission by a proposer for insurance to disclose a material fact relating to the risk proposed.


A failure to act, e.g., to repair a defective pathway.

Non-forfeiture condition

A condition in a life policy whereby some rights under the policy continue even though a premium due has not been paid.

Non-Institute company

A marine insurance company that is not a member of the Institute of London Underwriters.


General insurance other than marine insurance.

Non-medical business

Life or permanent health insurance where the proposer is not required to submit to a medical examination by a physician appointed by the insurance company.

Non-owned aircraft endorsement

An endorsement to an aviation policy indemnifying the insured against claims by passengers for which he is responsible when the passengers are being carried in an aircraft that is not the insured's property.

Non-participating employment

Employment between 1961 and 1975 in which members of a pension scheme earned some or all of their graduated pension from their employer's contracted-out scheme.

Non-payment risk

The risk that a debt will not be paid when due.


Same as Without profits.

Non-proportional reinsurance

Reinsurance such as excess of loss reinsurance where the reinsurer's liability is not calculated proportionately to the insurer's.

Non-selection limit

The amount of benefits under a group permanent health insurance up to which persons will be accepted into membership of the group without evidence as to their health.


Same as Substandard.

Non-standard construction

Used in fire insurance to describe a building any part of which does not conform to the rules for the minimum grade of construction.

Non-tariff company

An insurance company that is not a member of a rate-fixing association and so is not bound to impose the rates and conditions prescribed by that body for its members.

Non-underwriting member

A member of Lloyd's who is not empowered to underwrite, e.g., a retired underwriter.

Normal pension date

See Normal retirement date.

Normal retirement date

A pension scheme commonly defines a normal retirement date for its members while making provision both for early and deferred retirement.

North American Warranty

A warranty in a marine insurance policy that the insured vessel will not proceed to certain places in the north at certain times.

Not taken up

Term used to describe an insurance that the proposed insured has not proceeded with.

Not to Inure clause

A clause in a marine cargo insurance policy providing that the insurance shall not inure to the benefit of the carrier or other bailee. In other words the clause reserves the insurer's potential right of recovery from the carrier or bailee.

Not under repair

The clause in a marine hull policy governing returns of premium when the vessel is laid up provides for a higher rate of return when the laid-up vessel is not under repair.

Notice of abandonment

Notice given by the insured to the insurer in marine insurance when he considers that he has a claim for a constructive total loss (q.v.) and is therefore prepared to abandon the insured vessel or cargo to the insurer.

Notification of claim

Non-life insurance policies normally contain a condition requiring immediate notice of an occurrence that may give rise to a claim. In some cases a time limit is specified.

Notional reinstatement value cover

A form of property insurance cover whereby the insured declares the reinstatement value at the outset of the insurance period and estimates an amount to allow for inflation for which an additional premium is payable in arrear, based on an adjustment.


An agreement to substitute a new contract for an existing one, or to substitute a different person for one of the parties to a contract, with the agreement of all concerned.

Novus actus interveniens

A new and intervening act or omission, or a natural event, which breaks the causal connection between a previous act or omission and damage alleged to have resulted therefrom.

Nuclear contamination

Same as Radioactive contamination.

Nuclear Exclusion

Non-life insurance policies contain an exclusion of loss or damage or consequential loss or liability of and nature directly or indirectly caused by or contributed to by or arising from: (a) ionising radiations or contamination by radioactivity from any nuclear fuel or from any nuclear waste from the combustion of nuclear fuel; (b) the radioactive, toxic, explosive or other hazardous properties of any explosive nuclear assembly or nuclear component thereof.

Nuclear reactor

An installation for the purpose of generating heat from atomic fission for conversion into energy.

Nuclear risks

See Atomic risks.


The unlawful interference with a person's use or enjoyment of land, or of some right over or in connection with it, such as the right of free passage over a highway. A person committing a nuisance may be liable in tort for the consequences.

Numbered Rules

Those of the York-Antwerp Rules (q.v.) that are prefixed by a number. They are applied in priority to the lettered rules.

Numerical weighting system

A system of rating whereby the acceptability of a proposed insurance is judged and rated on a combination of factors to each of which a numerical weight is assigned.