Glossary

The net present value is the discounted value or current cost of an amount to be paid in the future, taking into account anticipated investment income and the timing of tax deductions.

Net retained liability is the amount of insurance that a ceding company keeps for its own account and does not reinsure in any way (except in some instances for catastrophe or clash reinsurance).

Net risk is the per occurrence policy limit retained by an insurer after purchase of reinsurance.

The net written premium is the written premium less deductions for commissions and ceded reinsurance.

Newly acquired entities are businesses or organizations an insured purchases during the policy period. Many liability insurance policies automatically define such entities as insureds for a specified number of days (e.g., 30, 60, or 90 days) or until the end of the policy period, whichever comes first.

Newsgathering torts refer to torts committed by news personnel during the course of obtaining and covering news events. Examples of such torts include intrusion on seclusion, private facts made public, and false light in public eye. Media liability insurance is designed to cover these kinds of exposures.

New for old is an historic provision in marine insurance contracts stipulating that when repairs are made and new parts are supplied in place of old ones that have been lost or damaged, there is an agreed discount for depreciation. Modern marine policies, however, generally provide for the repairs without a deduction for depreciation.

New source performance standards (NSPS) are uniform national Environmental Protection Agency (EPA) air emission and water effluent standards that limit the amount of pollution allowed from new sources or from modified existing sources.

Nexus signifies a causal connection or link.

No-fault or personal injury protection (PIP) is a type of auto insurance coverage mandated by statute in some jurisdictions. The statutes typically require insurers to provide or offer to provide first-party benefits for medical expenses, loss of income, funeral expenses, and similar expenses without regard to fault. Coverages, limits, and each party's responsibilities vary from state to state, as provided by law.