Term used in Facultative Aviation Reinsurance when no reinsurance commission is allowable.
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(1) Term used in Marine insurance to emphasize that all discounts, without exception, have been taken off a premium (02) Term used in Facultative Aviation Reinsurance when no reinsurance commission is allowable.
Tag: RAW
Net Amount at risk
The difference between the face amount of the Insurance and the reserve.
Net amount at risk (Liability Insurance)
The difference between the face value of the policy and the reserve accumulated under that policy.
Net central assets
Assets comprising the fourth link in the Lloyd’s chain of security. On 31 December 2002 they amounted to £563m (the central fund of £467m plus other Society assets of £87m). They are the central assets of Lloyd’s less the liabilities of the Society (less the liabilities of the members) valued in accordance with the Lloyd’s Sourcebook (LLD 9-15). For margin of solvency purposes they must cover, in the aggregate: members’ defined deficiencies on general and long-term business, the Society’s required minimum margin and the excess (if any) of €3,000,000 (when converted at a designated rate to sterling) over the sum of members’ margins for long-term business and the amount of any increase in the Society margin invoked under the relevant rule. If net central assets fall below the required amount, the Society must inform the FSA.
Net Claims
Claims after recoveries from Reinsurers (of gross claims incurred).
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Gross claims less reinsurance recoveries.
Net cost
The total premiums paid minus their cash value and any dividends generated by the policy as of the time the difference is being calculated. Insurers who supply life insurance policies usually make comparisons of net cost every ten or 20 years.
Net Direct Premium
Gross premium after returns for policies cancelled or not taken.
Net Earned Premium
The premiums received or due to an insurer less the cost of reinsurance and after adjustment to allow for the cost of any unexpired risk.
Net earned premium (NEP)
This refers to all written premium, including what may not be earned in the reporting period. In some cases, the insurer may decide to reduce their own risk and reinsure the contracts with a reinsurer. In such cases, the reinsurance premium paid out is reduced from the earned premiums received from the policyholder.
Net Earnings
Revenue from operating sources, after deduction of the operating expenses, maintenance, uncollectable revenues, and taxes applicable to operating properties or revenues, but before deduction of financial charges and generally before deduction of financial charges and generally before deduction of provision for depreciation and retirement.