National Association of Life Underwriters (NALU). :
An association of Life Insurance agents, the activities of which center on the welfare and education of agents and legislation affecting agents. (LI,H)
Natural Premium. : The pure mortality cost of Life Insurance for one year at any given age. See also Pure Premium. (LI)
Net Amount At Risk. :
A term which refers to the differences between the face amount of a policy and the reserve or cash value which has been built up under that policy. (LI)
Net Increase. :
The increase in the total amount of business an insurer has to force over a given period of time. It is figured as the total of new policies issued plus those renewed less policies lapsed and cancelled. (LI)
Net Level Premium Reserve. :
The reserve needed by an insurer to cover net level policies which are in their later years. Loosely speaking, the level premium system of paying for a long-term Life or Health policy involves overpayment in the early years and underpayment in the later years. (LI,H)
Net Level Premium. :
The pure mortality cost of a Life Insurance policy from its inception to its maturity date, divided by the number of years the policy is to be in force. See also Level Premium Insurance. (LI)
Net Rate. :
(1) See the third definition of Net Premium for the definition applicable to participating Life Insurance policies. (2) In a nonparticipating policy, the rate book rate. (LI)
Noncontributory. :
A plan or program of insurance, usually group, for which the employer pays the entire premium and the employee contributes no part of the premium. (LI,H)
Nonforfeiture Values. :
Those values in a Life Insurance policy that by law the policy owner cannot forfeit even if he ceases to pay the premiums. These benefits are the cash surrender value, the loan value, the paid-up insurance value, and the extended term insurance value. The policy owner may choose one of these nonforfeiture options, but even if he fails to do so, the one specified in the contract for such a case automatically goes into effect. (LI)
Nonmedical (Non-Med). :
A contract of Life or Health Insurance underwritten on the basis of an insured's statement of his health with no medical examination required. (LI,H)
Numerical Rating. :
An underwriting method of determining the extra rate to be charged for a substandard insured. "Standard" is rated 100. Various impairments are assigned various numerical values. The sum of 100 plus the values of the ratings of the impairments indicates the table to use in determining the rate of the policy. (LI)
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