Abbott, Langer Association Surveys

Abbott-Langer & Associates Business Glossary

This glossary of business definitions contains over 2,000 business terms used in compensation and benefits administration. Continually updated, this specialized business dictionary focuses on definitions of Human Resources terms and business terms.

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Naic Model Privacy Act

A bill written by the National Association of Insurance Commissioners that set guidelines for data provided to or by insurance agents, institutions and support organizations.

NAICS

The North American Industry Classification System was developed by the United States, Canada, and Mexico to provide comparable statistics of industrial production across the three countries and replace SIC. NAICS also provides for increased comparability

Named Individuals

Based on SEC requirements, these persons have their compensation listed in the company proxy statement.

National Association Of Insurance Commissioners (NAIC)

The primary responsibility is to protect the interests of consumers that are covered or considering buying insurance. The NAIC helps state regulators in that respect.

National Association Of Securities Dealers (NASD)

A voluntary self­regulated securities organization responsible for the operation and regulation, including fair and ethical practice, of the NASDAQ stock market and over­the­counter markets.

National Association Of Securities Dealers Automated Quotation System (NASDAQ)

An organization that helps in stock trading, via a computerized system, for listed and over the counter stocks.

National Average Earnings (NAE)

A measurement, per individual country, of the average salary per individual.

National Brokerage Houses

Companies that provide individualized employee benefit and risk management advice to their clients.

National Committee For Quality Assurance (NCQA)

An independent group that reviews quality of care and other procedures of managed care organizations to render an accreditation. NCQA developed the Health Plan Employer Data and Information Set (HEDIS), which is used as part of the accreditation process.

National Compensation Survey (NCS)

A survey of salaries, wages, and benefits produced by the U.S. Bureau of Labor Statistics. Includes local, regional, and nationwide data. The NCS is designed to replace the Employment Cost Index (ECI), the Occupational Compensation Survey Program (OCSP), and Employee Benefits Survey (EBS).

National Labor Relations Act Of 1935 (Wagner Act)

A federal law giving employees the right to self-organize unions, bargain collectively through representatives of their own choosing.

National Labor Relations Board (NLRB)

A board of members who administer the Wagner and the Taft-Hartley Acts. The board determines bargaining agents, bargaining units and adjudicates unfair labor practice charges.

National Occupational Classification System (NOC)

The Canadian labor market classification system for jobs. Includes coding for duties, skills, interests, aptitudes, education requirements, and work settings.

National Organization Of Life And Health Guaranty Associations (NOLHGA)

A voluntary association of life and health guaranty associations that resolve issues and problems for policyholders in the event of a life and health insurance company insolvency.

National Technical Information Service (NTIS)

This U.S. government agency is responsible for the SIC (Standard Industrial Classification) manual.

Nature Of Work

Information about a specific occupation that describes the duties and responsibilities.

NCS

The National Compensation Survey is the U.S. government's survey of salaries, wages, and benefits produced by the U.S. Bureau of Labor Statistics. Includes local, regional, and nationwide data. The NCS is designed to replace the Employment Cost Index (ECI), the Occupational Compensation Survey Program (OCSP), and Employee Benefits Survey (EBS).

NEC

Stands for: not elsewhere classified.

Needs Analysis

Discovering facts about a potential client to assist in determining their insurance needs.

Negative Differential

When the cost of goods and housing are more expensive in an employees home country than those of the assigned temporary location.

Negotiated Trusteeship

When collective bargaining results in an agreement between a union and an employer to provide the organization insurance.

Net Amount At Risk

The difference between the death benefit of a life insurance policy and the policy's reserve at the end of the year.

Net Asset Value (NAV)

The dollar value or purchase price of a single stock in a mutual fund.

Net Assets

Total assets minus total liabilities.

Net Cost

A figure to describe the cost of individual insurance.

Net Income After Tax

An individuals or company's profit after taking into consideration all other expenses and income and taxes.

Net Loss

An individuals or company's loss after taking into consideration all other expenses and income and taxes.

Net Premium

In life insurance it is the amount of money necessary to provide benefits.

Net Present Value (NPV)

The current worth of an investment's future net cash flows minus the initial investment.

Net Sales

Total sales less any returns and discounts.

Net Worth

Complete assets less complete liabilities.

New York Stock Exchange (NYSE)

In the U.S., the NYSE is the oldest and the largest stock exchange. It is located on Wall Street in New York City.

NMHPA

Newborns' and Mothers' Health Protection Act of 1996 (NMHPA) is part of the Mental Health Parity Act and states that group health plans cannot restrict the length of any hospital stay that relates to childbirth for the newborn or mother to less than 48 hours for a normal vaginal delivery or 96 hours for a Caesarean delivery.

No Correlation

A relationship where there is no pattern.

NOC

The National Occupational Classification System is the Canadian labor market classification system for jobs. Includes coding for duties, skills, interests, aptitudes, education requirements, and work settings.

No-Evidence Limit

In group insurance, the maximum dollar amount that an insurance company will insure an individual for without requiring evidence of insurability. May also be referred to as guaranteed issue.

No-Load Fund

A mutual fund in which no commissions are paid if the purchaser buys direct from the fund.

Nominal Measurements

These measurements use numbers as an identifier.

Non Admitted Assets

The assets that are restricted from being added to a life insurance company's balance sheet.

Non Admitted Reinsurer

In a certain jurisdiction, a reinsurer who is not licensed to accept reinsurance.

Non Compete Agreements

A condition of an employment contract that states a specific time period that the employee cannot compete with the employer if the employee is terminated.

Non Current Assets

An asset that is not easily changed to cash or not anticipated to become cash within a year.

Non Current Liabilities

A debt that is not due to be paid within the next year.

Non Statutory Stock Option (NSO)

A stock-option that is part of a compensation package that does not meet the IRS guidelines for a qualified stock option. The employee is taxed at the beginning if the value of the stock is known, or at the end when the employee exercises the option if the value of the option in unknown. These options are typically offered to executives.

Non-Cancelable And Guaranteed Renewable Policy

A health insurance policy for an individual that states the premium cannot be increased and the benefits cannot be terminated.

Noncash Incentives

Incentives that are not a direct cash payment, such as comp time, a membership to a club and a reserved parking space.

Noncontributory Benefit Plan

A term used when discussing employee benefit plans under which the employer pays, or contributes, the entire cost of the premium for benefits for the employees.

Noncontributory Organization Insurance

A term used when discussing employee benefit plans under which the employer pays, or contributes, the entire cost of the premium for benefits for the employees.

Nondiscrimination Rules

An Internal Revenue code that states employee benefit plans are not to provide significantly greater benefits to higher paid employees and owners than to lower paid employees.

Non-Duplication Of Benefits

A kind of coordination-of-benefits provision under which the insured's secondary insurance plan pays the difference, if any, between the amount paid by the primary plan and the amount that would have been payable by the secondary plan had that plan been primary.

Nonelective Contributions

Any employer contribution, that is not a matching contribution, for which the employee may choose to have the contribution paid to the employee in cash in lieu of being contributed to the plan and, the contributions are not forfeitable when made and cannot be withdrawn prior to reaching certain conditions.

Nonexclusive Territory

An arrangement in which several agents can represent one insurer.

Nonexempt Employees / Non-exempt Employee

Employees who are subject to the minimum wage and overtime pay provisions of the Fair Labor Standards Act.

Nonfinancial Rewards

Any recognition given to an employee by an employer other than cash.

Nonforfeiture Factors

Values that are similar to annual premiums that insurers may use to calculate policies cash values.

Nonforfeiture Values

The benefits that a life insurer guarantees to the policy holder if the policy holder discontinues premium payments.

Nonforfieture Options

Different options that a policy holder has if a life insurance policy lapses to apply the cash value of that policy.

Nonimmigrant Visas

Under specific circumstances, a visa will allow a non U.S. citizen to work in the United States.

Non-Insured Pension Fund

A pension fund that has not been funded by insurance contracts.

Nonmedical Application

An application for insurance that does not require the applicant to submit to a medical examination.

Nonmonetary Awards

An award that is not cash.

Nonparticipating Policy

An annuity or life insurance policy that the policy holder does not receive dividends.

Nonqualified Annuity

An annuity that has been funded with money that was previously taxed in the same year that the funds are to be deposited.

Nonqualified Deferred Compensation Plan

Typically used for senior executives and highly compensated employees, this retirement income plan does not meet the guidelines for a qualified plan, therefore they do not meet the criteria to be eligible for the tax advantages of a qualified plan.

Nonqualified Foreign Plan

A foreign plan that is no longer qualified due to termination or reversal of a section 404A election.

Nonqualified Pension Plan

A pension plan that does not meet IRS requirements, or receive the positive tax benefits, due to the increased benefits compared to what is allowable of a qualified plan.

Non-Qualified Stock Options

A stock-option that is part of a compensation package that does not meet the IRS guidelines for a qualified stock option. The employee is taxed at the beginning if the value of the stock is known, or at the end when the employee exercises the option if the value of the option in unknown. These options are typically offered to executives.

Nonquantitative Job Evaluation

A method of evaluating job worth and creating a hierarchy without the use of quantitative methods.

Nonrandom Sampling

A sampling that has not used a random selection.

Nonresident License

The license gives the agent of another state authorization to the sell insurance in the licensing state.

Nonretroactive Disability Benefits

A disability benefit that pays for the period of disability after the elimination period.

Nonscheduled Dental Plan

The dentist is paid based on actual charges, if the charges are usual, customary and reasonable.

Nonsmoker Risk Class

People who are a standard risk and that have not smoked for a particular time period prior to the application.

Nonsymmetric Distribution

Graphed points that are not the exact image of each other, usually with cluster of more points on one side of the graph.

Normal Cost

The amount necessary to fund for retirement benefits for one plan year for an individual or a whole pension plan.

Normal Distribution

A certain bell shaped distribution on an graph usually as a statistic deduction.

Normal Retirement Age

The age, as established by a plan, when retirement normally occurs, and the participant(s) in the plan can receive their full pension benefits.

North American Industry Classification System (NAICS)

Developed by the United States, Canada, and Mexico to provide comparable statistics of industrial production across the three countries and replace SIC. NAICS also provides for increased comparability with the International Standard Industrial Classification.

NTIS

The National Technical Information Service is the U.S. government agency responsible for the SIC (Standard Industrial Classification) manual.

Numerical Rating System

A system of categorizing risk where medical and nonmedical factors are given a numeric number based upon the expected impact on mortality.