Also referred to as the working capital. To be bonded, a contractor needs to have sufficient working capital, which is calculated as the difference between current allowable assets and current changeable liabilities.
Insurance Encyclopedia
Net Rate
The amount of the premium before loading for expenses.
Net rate (Liability Insurance)
The amount of a premium after the dividends appointed to pay it have been deducted. This term can also refer to the rate found in a rate book for a nonparticipating policy.
Net Registered Tonnage (NRT)
It refers to the earnings space capacity of a ship. It expresses the ship space available for the storage of cargo and accommodation of passengers. It is obtained by deducting from GRT the space (taking 100 cubic ft = 1 ton) occupied by stores, fuel, machinery, crew members etc. which does not represent the earning capacity of ship.
Net relevant earnings
The income that can be used to assess the maximum contribution that can be made to a personal pension scheme by the self-employed or employees in non-pensionable employment. In the case of the self-employed this is income (tax schedule D) less business expenses. For the employed it is income (tax Schedule E) including profit-related pay and taxable benefits.
Net Retained Brokerage
Brokerage retained by a broker after deduction of allowances to third parties.
Net Retained Liability
The amount of insurance that a ceding company keeps for its own account and does not reinsure in any way. It is the amount of loss that a cedent retains after all available reinsurance recoveries (except in some instances for catastrophe reinsurance). See also Net Loss.
Net Retained Line
The amount of coverage retained by the ceding company on an individual risk in a Surplus reinsurance treaty. This term can also be used to mean the maximum amount of loss on a particular risk to which an insurer will expose itself without reinsurance.
Net Retained Line Clause
Explains that the loss subject to the reinsurance agreement is net of all other reinsurances, whether collectible or not, as well as net of salvages and all other reinsurance recoveries due to the reinsured.
Net retained lines clause
Allows the reinsured to effect other reinsurances in priority so that the treaty itself protects only the net account, e.g. the treaty comes into play after proportional or facultative cessions. The insolvency of other reinsurers clause is embedded within this clause.