They don't in stock SH3, only in GWX, and then only some, not all. And yes, some neutrals were lit up at night.
Quote:
Later the master and the other occupants of his boat reboarded the ship and tried to attract the attention of an illuminated neutral vessel sighted during the night, but to no avail.
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http://uboat.net/allies/merchants/1471.html
They sometimes also painted flags and nationality on the sides. Iambecomelife's Merchant Fleet Mod represents this very nicely.
According to the Hague Convention of 1907 Hospital ships
must be marked and lighted.
http://www.princeton.edu/~achaney/tm...ital_ship.html