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Insurance Glossary N - P
N
Natural Premium – The amount of premium that must be collected from each member of a group composed
of the same age, sex and risk in order to pay $1,000 for each death that will occur in the group each year.
Non cancelable – An insurance contract that the insured has a right to continue in force by payment of
premiums that remain the same for a substantial period of time.
Non forfeiture Values – Those guaranteed values in a life insurance policy that cannot be taken from the
insured, even if he or she ceases to pay premiums.
Non medical – A life or health insurance policy that is underwritten based on the insured’s statement of health
rather than a medical examination.
Non-participating Policies (Non-par) – Insurance that does not pay dividends.
Nonqualified Plan - A type of benefit plan that may discriminate, is not required to be filed with the IRS, and
does not provide a current tax deduction for contributions.
Nonrenewal – A termination of a policy by an insurer on the anniversary or renewal date.
Nonresident Agent – An agent licensed in a state in which he or she is not a resident.
Notice of Claim – A provision that spells out an insured’s duty to provide the insurer with reasonable notice in
the event of a loss.
O
Omnibus Budget Reconciliation Act – A federal law which extends the minimum COBRA continuation of
group health care coverage from 18 to 29 months for qualified beneficiaries who are disabled at the time of
qualification.
Option – A choice of ways of receiving policy dividends, nonforfeiture values, death benefits, or cash values.
Oral Surgery – Operative treatment of the mouth such as extractions of teeth and related surgical treatment.
Orthodontics – A special field in dentistry which involves treatment of natural teeth to prevent and/or correct
dental anomalies with braces or appliances.
Out-of-Pocket Costs – Amounts an insured must pay for coinsurance and deductibles before the insurer will
pay its portion.
Over Insurance – An excessive amount of insurance that would result in overpayment to the insured in the
event of a loss.
P
Paid-Up Insurance – A policy on which all premiums have been paid but which has not matured due either to
death or endowment.
Parol – Legal term that distinguishes oral statements from written statements.
Parol Evidence Rule – A rule that states a contract may not be altered without written consent of both
parties; in other words, the contract may not be altered by an oral agreement.
Partial Disability – Ability to perform some, but not all, of the duties of the insured's occupation as a result of
injury or sickness.
Participating Policies (Par) – Insurance that pays dividends to policyholders.
Payment of Claims – A provision that specifies to whom claims payments are to be made.
Payor Benefit – A rider found in juvenile policies which waives the premiums if the person paying them (often
the parent) is disabled or dies while the child is still a minor.
Peril – The cause of a possible loss.
Periodontics – A specialty of dentistry that involves treatment of the surrounding and supporting tissue of the
teeth such as treatment for gum disease.
Permanent Disability – Disability from which the insured does not recover.
Permanent Life Insurance – A general term used to refer to various forms of whole life insurance policies
that remain in effect to age 100 so long as the premium is paid.
Physical Exam and Autopsy – A provision that allows an insurer, at its own expense, to have an insured
physically examined when a claim is pending or to have an autopsy performed where not prohibited by law.
Policy Loan – A nonforfeiture value in which an insurer loans a part or all of the cash value of the policy
assigned as security for the loan to the policyowner.
Policyholder – The person who has possession of the policy, usually the insured.
Policyowner – The person who is entitled to exercise the rights and privileges in the policy. This person may
or may not be the insured.
Pre-Existing Condition – A physical condition that existed before the effective date of the policy, usually
excluded from coverage.
Preferred Provider Organization (PPO) – An organization of medical professionals and hospitals who
provide services to an insurance company’s clients for a set fee.
Preferred Risk – An insurance classification for applicants who have a lower expectation of incurring loss,
and who, therefore, are covered at a reduced rate.
Premium - A periodic payment to the insurance company to keep the policy in force.
Presumptive Disability – A provision that is found in most disability income policies which specifies the
conditions that will automatically qualify the insured for full disability benefits.
Primary Beneficiary – The person who is named as first to receive benefits from a policy.
Primary Policy – A basic, fundamental insurance policy which pays first with respect to other outstanding
policies.
Principal Amount – The full face value of a policy.
Private Insurance – Insurance furnished by nongovernmental insuring organizations.
Pro Rata Cancellation – Termination of an insurance policy, with an adjustment of the premium charge in
proportion to the exact coverage that has been in force.
Probationary Period – The period of time between the effective date of a health insurance policy and the
date coverage for all or certain conditions begins.
Proceeds – The amount payable by the insurance company, usually in at the insured's death or when the
policy matures.
Producer – Insurance agent or broker.
Proof of Loss – A claim form that a claimant must submit after a loss occurs.
Prosthodontics – A special area of dentistry that involves the replacement of missing teeth with artificial
devices like bridgework or dentures.
Provider – Any group or individual who provides health care services.
Pure Protection – Insurance whereby premiums are paid for protection in the event of death or disability, not
for cash value accumulation.
N
Natural Premium – The amount of premium that must be collected from each member of a group composed
of the same age, sex and risk in order to pay $1,000 for each death that will occur in the group each year.
Non cancelable – An insurance contract that the insured has a right to continue in force by payment of
premiums that remain the same for a substantial period of time.
Non forfeiture Values – Those guaranteed values in a life insurance policy that cannot be taken from the
insured, even if he or she ceases to pay premiums.
Non medical – A life or health insurance policy that is underwritten based on the insured’s statement of health
rather than a medical examination.
Non-participating Policies (Non-par) – Insurance that does not pay dividends.
Nonqualified Plan - A type of benefit plan that may discriminate, is not required to be filed with the IRS, and
does not provide a current tax deduction for contributions.
Nonrenewal – A termination of a policy by an insurer on the anniversary or renewal date.
Nonresident Agent – An agent licensed in a state in which he or she is not a resident.
Notice of Claim – A provision that spells out an insured’s duty to provide the insurer with reasonable notice in
the event of a loss.
O
Omnibus Budget Reconciliation Act – A federal law which extends the minimum COBRA continuation of
group health care coverage from 18 to 29 months for qualified beneficiaries who are disabled at the time of
qualification.
Option – A choice of ways of receiving policy dividends, nonforfeiture values, death benefits, or cash values.
Oral Surgery – Operative treatment of the mouth such as extractions of teeth and related surgical treatment.
Orthodontics – A special field in dentistry which involves treatment of natural teeth to prevent and/or correct
dental anomalies with braces or appliances.
Out-of-Pocket Costs – Amounts an insured must pay for coinsurance and deductibles before the insurer will
pay its portion.
Over Insurance – An excessive amount of insurance that would result in overpayment to the insured in the
event of a loss.
P
Paid-Up Insurance – A policy on which all premiums have been paid but which has not matured due either to
death or endowment.
Parol – Legal term that distinguishes oral statements from written statements.
Parol Evidence Rule – A rule that states a contract may not be altered without written consent of both
parties; in other words, the contract may not be altered by an oral agreement.
Partial Disability – Ability to perform some, but not all, of the duties of the insured's occupation as a result of
injury or sickness.
Participating Policies (Par) – Insurance that pays dividends to policyholders.
Payment of Claims – A provision that specifies to whom claims payments are to be made.
Payor Benefit – A rider found in juvenile policies which waives the premiums if the person paying them (often
the parent) is disabled or dies while the child is still a minor.
Peril – The cause of a possible loss.
Periodontics – A specialty of dentistry that involves treatment of the surrounding and supporting tissue of the
teeth such as treatment for gum disease.
Permanent Disability – Disability from which the insured does not recover.
Permanent Life Insurance – A general term used to refer to various forms of whole life insurance policies
that remain in effect to age 100 so long as the premium is paid.
Physical Exam and Autopsy – A provision that allows an insurer, at its own expense, to have an insured
physically examined when a claim is pending or to have an autopsy performed where not prohibited by law.
Policy Loan – A nonforfeiture value in which an insurer loans a part or all of the cash value of the policy
assigned as security for the loan to the policyowner.
Policyholder – The person who has possession of the policy, usually the insured.
Policyowner – The person who is entitled to exercise the rights and privileges in the policy. This person may
or may not be the insured.
Pre-Existing Condition – A physical condition that existed before the effective date of the policy, usually
excluded from coverage.
Preferred Provider Organization (PPO) – An organization of medical professionals and hospitals who
provide services to an insurance company’s clients for a set fee.
Preferred Risk – An insurance classification for applicants who have a lower expectation of incurring loss,
and who, therefore, are covered at a reduced rate.
Premium - A periodic payment to the insurance company to keep the policy in force.
Presumptive Disability – A provision that is found in most disability income policies which specifies the
conditions that will automatically qualify the insured for full disability benefits.
Primary Beneficiary – The person who is named as first to receive benefits from a policy.
Primary Policy – A basic, fundamental insurance policy which pays first with respect to other outstanding
policies.
Principal Amount – The full face value of a policy.
Private Insurance – Insurance furnished by nongovernmental insuring organizations.
Pro Rata Cancellation – Termination of an insurance policy, with an adjustment of the premium charge in
proportion to the exact coverage that has been in force.
Probationary Period – The period of time between the effective date of a health insurance policy and the
date coverage for all or certain conditions begins.
Proceeds – The amount payable by the insurance company, usually in at the insured's death or when the
policy matures.
Producer – Insurance agent or broker.
Proof of Loss – A claim form that a claimant must submit after a loss occurs.
Prosthodontics – A special area of dentistry that involves the replacement of missing teeth with artificial
devices like bridgework or dentures.
Provider – Any group or individual who provides health care services.
Pure Protection – Insurance whereby premiums are paid for protection in the event of death or disability, not
for cash value accumulation.
| Trout Insurance is a full line insurance agency located in Asheville, NC. Trout Insurance offers life, health, disability, Medicare supplement, long term care insurance home and auto insurance for individuals as well as college funding and retirement planning. Christopher Smith, Dave Trout, Jan Trout and Ralph Redpath are independent insurance agents with Trout Insurance. Christopher Smith specializes in group health insurance, employee benefits, insurance needs for business owners, key person disability insurance, disability buy out insurance, individual life insurance, short term health insurance, disability insurance, long term care insurance, group long term care insurance and critical illness insurance. Dave Trout specializes in life and disability insurance, Medicare supplement insurance, retirement planning for individuals and businesses, commercial business insurance and college funding. Jan Trout specializes in individual health insurance. Ralph Redpath specializes in home and auto coverage. Web site design by Christopher Smith. Agency photo by Jason Sanford. |
