Home | About | Compare & Save | Insurance Company Ratings | Understanding Insurance | Articles | Links | Contact | Video Life insurance...because life is unpredictable. Auto Insurance Life Insurance Importance of Life Insurance Time Is Money Life Insurance For The Self Employed Life Insurance Needs Analysis Glossary of Life Insurance Terms Health Insurance Glosssary of Life Insurance Terms A B C D E F G H I J K L M N O P Q R S T U V W X Y Z Definitions written so you can actually understand them. Browse alphabetically, or search for a word or term by typing it into the search field located in the top navigation by the GO button (above right). National Association of Insurance Commissioners (NAIC) This association of state insurance commissioners is designed to promote consistent insurance regulation nationwide. Although the NAIC has no legal power, the recommendations of the NAIC and the actions taken at its semiannual meetings carry great weight with the individual state insurance commissioners, the state legislatures, and the insurance industry. Back to Top National Organization of Life and Health Guaranty Associations (NOLHGA) An organization of individual state guaranty associations which serves as a central source of information for the state associations. One of the key problems NOLHGA helps resolve is the one created by the insolvency of insurers that are licensed in more than one state. See also guaranty association. Back to Top Needs Analysis An accounting exercise performed either by a prospective life insurance policyholder, alone or with an agent, that provides a detailed personal and financial picture on that prospect. The resulting analysis helps prospective policyholders determine the amount of insurance is needed to achieve the desired goals. Back to Top Net Amount At Risk A figure life insurance carriers look to as they determine when a a given policy will reach the break-even point. The net amount at risk is the life insurance policy’s death benefit less the policy’s reserve at the end of the policy year. Back to Top Net Benefit Premium As defined by generally accepted accounting principles (GAAP), the net benefit premium is that portion of the premium that funds the benefit reserve. Contrast with gross premium. See also net premium. Back to Top Net Cost A figure used to determine the cost of the insurance policy. In group insurance, the net cost is the policy premiums less dividends paid. Back to Top Net Level Premium Reserve Calculated using net level annual premiums, the net level premium reserve is the amount of liability than a life insurance company establishes for a policy. Back to Top Net Premium Calculated by using an assumed interest rate and a tabular mortality rate, the net premium shows the life insurance carrier how much money is needed to provide the guaranteed benefits for a given policy. The net premium equals a policy's gross premium minus the policy's loading and, under statutory accounting, funds the benefit reserve. See also gross premium, loading, net premium benefit, tabular interest rate, and tabular mortality rate. Back to Top Net Taxable Estate The value of all your property at death less all encumbrances and your other liabilities. Back to Top Nonadmitted Assets Assets that cannot be included on the balance sheet of a life insurance company's Annual Statement. Back to Top Nonforfeiture Options The options available to a policyholder for applying the cash value of the life insurance policy if that policy should lapse. See also automatic nonforfeiture option, automatic premium loan (APL), cash surrender value option, and reduced paid-up insurance option. Back to Top Nonforfeiture Values The benefits that the insurance company guarantees to the policyholder should the policyholder at some point stop paying the policy premiums. The nonforfeiture values are written into the policy itself and the amounts may be used in a number of nonforfeiture options. Back to Top Nonsmoker Risk Class A class of applicants designated by life insurance underwriters as being eligible for lower-than-standard premiums. Ex-smokers who have not smoked a cigarette for a specific period of time prior to applying for a life insurance policy, usually 12 months, are considered non-smokers and eligible for this risk class.   Life insurance...because life is unpredictable. InsureMeOnline.com Car Insurance Quotes Rate Your Insurance Company Car Insurance Tutorial Auto Insurance News Competitive Auto Insurance Quotes Life Insurance Tutorial Life Insurance News Save Money on Life Insurance Privacy Policy Terms of Use Site Map COPYRIGHT © 2008-2010 InsureMeOnline.com