1) during a rotation or any kind of dynamic motion, we cant assume a value of normal force,
normal force strictly depends on the forces experienced by the body at certain instant.
2) if the net force experienced by body without considering normal force cancels out i.e $Fnet$ = $0$, then we can assume normal force is $0$, but only if we know value of forces.
3) however in most cases we don't know the values of forces , even if we know the type or direction of force the body experience for example
when car moves towards top of hill we , know that it the body experience centrifugal force( iam talking in frame of car , non inertial frame, however result would be same in inertial as well considering centripetal force instead) and its own weight is pointing downwards, now imagine if the weight of body becomes too high that it exceeds centrifugal force $\cfrac{mv^2}{R}$ which is pointing outwards then there would be a $Fnet$ downwards , hence now to prevent body going inside the surface of hill we need to consider normal force $N$(pointing up) such that
$N$ $+$ $\cfrac{mv^2}{R}$ $=$ $mg$
the above equation in inertial frame can be viewed as that $mg$ $-$ $N$ is net force downwards which creates necessary centripetal force for the car to move over top of hill.
however remember if forces other than normal force balance each other we cant consider normal force, but that is only possible when we know the actual value of forces, it is always better to assume a normal force ( don't assume its value yet, create equations for equilibrium of forces to find normal force) to see if forces are balanced or not