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< N >
Net Asset Value:
Usually used in connection with investment companies to mean net asset value per share. This is the price, which a company’s shareholders would receive after liquidating its assets and paying off any debts. When used with a mutual fund company, the investment company computes its assets daily, or even twice daily, by totalling the market value of all securities owned. All liabilities are deducted, and the balance is divided by the number of shares outstanding. The resulting figure is the net asset value per share.
A contract of insurance is based on utmost good faith. An applicant for insurance is required to disclose to the company all material facts, which are necessary to underwrite a policy. If the applicant does not disclose all these facts, he/ she is guilty of nondisclosure and may risk having coverage voided from inception.
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.
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 so commenced offering premium discounts for life insurance to new applicants who have been non-smokers for at least 12 months before applying for coverage.
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