Innocent non-disclosure by the proposer before the insurance contract has been concluded. If it relates to a material fact, the insurance will be voidable ab initio at the option of the insurer. If the insurer exercises the option the full premium will be returned. See UTMOST GOOD FAITH.
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Innocent omission by a proposer for insurance to disclose a material fact relating to the risk proposed.
Insurance Encyclopedia
Non-Essential Covers for Motor Insurance
(a) Personal Accident Covers for un-named persons Cover is available for all persons travelling in the vehicle, subject to its maximum carrying capacity. The cover can be taken on named basis for employees or unnamed basis for other than employees. (b) Liability for Non-fare paying passengers.
Non-exempt activities order
FSMA, s.327(6) states that activities must not be of a description, or relate to an investment of a description, specified in an Order made by HM Treasury for the purposes of this sub-section. This coupled with the restricted activities of the designated professional bodies will prohibit exempt professional firms from carrying on specific types of regulated activity.
Non-forfeiture clause
Life policy clause that keeps the policy in force out of the surrender value for a limited period, after the grace period and continued nonpayment of the renewal premium. The policy may remain open for one year or until the surrender value has been exhausted. If a limited period applies, any balance remaining is paid to the insured or used to buy a paid-up policy. When the non-forfeiture period ends a revival clause may apply.
Non-Institute Company
A Marine Insurance Company that is not a member of the Institute of London Underwriters.
Non-Insurance Transfers
Devices other than Insurance under which a business can transfer a potential loss to someone else. For example, the transfer may be accomplished through a provision in a lease.
Non-invalidation clause
A clause that can be added without charge to a fire policy. It protects the property owner against a breach of warranty by a tenant provided that the owner was not aware of the breach and he advises the insurers as soon as he becomes aware of it.
Non-investment insurance contract
A general insurance contract or a pure protection contract but which is not a long-term care insurance contract. Such contracts are governed by Insurance: Conduct of Business Rules except travel insurance sold as a part of a holiday package (a decision to be reviewed in 2007).
Non-mainstream regulated activity
Regulated activity of an authorised professional firm in relation to which certain conditions (5.2.1, The Professional Firms Sourcebook) are satisfied. This includes a condition making the regulated activity incidental to the provision of professional services. FSA requirements are modified or disapplied so that the supervision in regard to the activities is equivalent to that which applies to the exempt regulated activities of exempt professional firms.
Non-Marine
General Insurance other than Marine.