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.
Tag: RAW
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.
Net retention
UK: The amount retained by the reinsured for its own account after coinsurance, proportional or acultative reinsurance have been taken into account. See NET RETAINED LINES CLAUSE.
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The final amount of insurance retained by the Company after reinsuring such amounts as it did not wish to retain.
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The insurance a ceding company keeps and does not reinsure.
Net risk
The remaining residual risk after the intrinsic hazards of the business or organisation have been reduced in terms of nature, scale and probability of occurrence by the precautions taken by the insured. Ascertaining the net risk is a part of risk assessment.
Net Terms
Free of charters’ commission
Net Underwriting Income
Net premiums earned less incurred losses, loss-adjustment expenses, underwriting expenses incurred, and dividends to policyholders.
Net Weight
(Actual Net Weight) : Weight of goods alone without any immediate wrappings; e.g., the weight of the contents of a tin can without the weight of the can.
Net Worth
The amount by which assets exceed liabilities. It is of concern to bond indemnifiers in determining the size of a job contractor can handle.
Net worth (Surety)
The margin by which a company’s assets exceed their liabilities.