Financial Glossary


Named Perils
Coverage in a property policy that provides protection against loss from only the perils specifically listed in the policy rather than protection from physical loss. Examples of named perils are fire, windstorm, theft, smoke, etc.
The National Association of Securities Dealers Automated Quotation System is an automated information network that provides brokers and dealers with price quotations on securities traded over-the-counter.
National Association of Securities Dealers (NASD)
The largest securities-industry self-regulatory organization in the United States; through its subsidiaries, NASD Regulation, Inc., The NASDAQ Stock Market, Inc., NASD Dispute Resolution, Inc., and The American Stock Exchange, the NASD develops rules and regulations, conducts regulatory reviews of members' business activities, disciplines violators, and designs, operates, and regulates securities markets and services all for the ultimate benefit and protection of the investor.
Net Asset Value (NAV)
Total assets of a corporation less its liabilities. Also referred to as shareholders' equity.
Net Family Income
Net family income is the net income of the beneficiary’s family used to determine eligibility for the Canada Child Tax Benefit. Check your Canada Child Tax Benefit notice to find out your net family income.
Net Premium
The portion of the premium rate that is designed to cover benefits of the policy, but not expenses, contingencies, or profit. The term is also used to describe the portion of the premium remitted to the home office by an agent after deduction of the agent’s commission.
New York Stock Exchange (NYSE)
The oldest and largest stock exchange in the world, where most major U.S. blue chip companies trade; also known as the Big Board.
Nominee Owner
A person or entity named to act on behalf of another person or entity (e.g., beneficial owner), usually to facilitate the processing of transactions.
Non-cancellable Guaranteed Renewable Policy
An individual policy which the insured person has the right to continue to force until a specified age, such as to age 65, by the timely payment of premiums. During this period, the insurer has no right to unilaterally make any changes in any provision of the policy while it is in force.
Non-Cancellable Policy
A health insurance contract provision where the insurance company can neither cancel coverage nor vary the premium rate specified in the contract. Policies specify, at the time of purchase, the length of time the coverage is non-cancellable and guaranteed renewable.
Non-Contributory Pension Plan
A pension plan where the entire cost of the plan is borne by the employer and no employee contributions are required.
A term applied to employee benefit plans under which the employer bears the full cost of the benefits for the employees. One hundred percent of the eligible employees must be insured.
Non-Forfeiture Option
One of the choices available if the policyholder discontinues premium payments on a policy with a cash value. This, if any, may be taken in cash, as extended term insurance or as reduced paid-up insurance.
Non-Medical Limit
This is the maximum value of a policy that an insurance company will issue without the applicant taking a medical examination, although medical questions are invariably asked during the application process. When a non-medical issue is made through group insurance, in most cases, medical data is not requested at all.
Non-Occupational Policy
One that provides off-the-job coverage only; it does not cover loss resulting from accidents or sickness arising out of or in the course of employment or covered under any workers’ compensation law.
Non-Participating Insurance
Plan of insurance under which the policyholder is not entitled to share in the dividend distribution of the company.
Non-Resident Tax (NRT)
A tax levied by governments requiring the registered holder of a security to pay tax based on the residence of the issuer and registered holder.
Non-Smoker Discount
In October 1996 it was announced in the international news that scientists had finally located the link between cigarette smoking and lung cancer. In the early 1980’s, some Canadian Life Insurance Companies had already started recognizing that non-smokers had a better life expectancy than smokers. Today, most life insurance companies offer discounts to those who have been non-smokers at least 12 months prior to applying for coverage. Savings to non-smokers can be up to 50% of regular premium depending on age and insurance company. Most life insurance companies offering non-smoker rates insist that the person applying for coverage have abstained from any form of tobacco or marijuana for at least twelve months, some companies insist on longer periods, up to 15 years.


Occupational Hazards
Occupations which expose the insured to greater than normal physical danger by the very nature of the work in which the insured is engaged, and the varying periods of absence from the occupation, due to the disability, that can be expected.
Offer to Purchase
A formal legal document that offers a specific price for a specified real property. The offer may be firm (with no conditions) or conditional (certain conditions yet to be fulfilled).
Office of the Superintendent of Financial Institutions (OSFI)
The federal agency responsible for regulating and supervising banks, insurance, trust, loan and investment companies, federally-regulated pension plans, and co-operative credit associations that are licensed or registered by the federal government.Website
Open Contract
A type of contract under which a society’s charter, constitution, and bylaws become a part of the insurance contract, and any amendments to them automatically become amendments to the insurance contract
Open Mortgage
A mortgage that permits prepayment in whole or in part of the principal balance without notice or bonus.
A right (but not obligation) to buy or sell property for a set period at a set price.
Ordinary Life
Synonymous With Whole Life and Straight Life The three terms are applied to the type of policy which continues during the whole of the insured’s life and provides for the payment of amount insured at this death.
Over-the Counter Market
A means of buying and selling securities that are not listed on a stock exchange. Negotiations are carried out by telephone or computer network.
Overhead Insurance
A type of short-term disability income contract that reimburses the insured person for specified, fixed monthly expenses, normal and customary in the operation and conduct of his/ her business or office.