Glossary

Naturally occurring substances are substances that are naturally present in the environment but still may expose organizations to environmental liability.

Natural death indicates death not caused by external sources; usually pertains to death from disease or old age.

Negative basis is basis risk in the context of hedging a portfolio and is the difference between a specific portfolio of losses or investments and an index used as the underlying asset for the hedge.

Negligence is a tort involving failure to use a degree of care considered reasonable under a given set of circumstances and can lead to legal liability of the tortfeasor.

Negligence per se is conduct that violates standards of care as established by statute or law.

Negligent entrustment is failure to exercise the appropriate degree of care in allowing someone else to operate or use one's auto, aircraft, or watercraft.

Negligent evaluation refers to a type of employment-related claim in which an employee plaintiff asserts that the employee's performance evaluation was excessively negative, unfairly low, or otherwise inaccurate and therefore did not reflect the employee's actual, higher level of performance.

Negligent provider selection is a key source of liability for a managed care organization (MCO) that arises from an MCO's negligence in selecting (or retaining) a healthcare provider who is deficient in delivering healthcare services, and such deficiency produces an injury.

A negligent referral is a claim made against a professional who negligently refers a client/patient to another professional.

Negligent retention is a type of employment-related claim in which a plaintiff asserts that an employer failed to discharge an employee who management knew, or should have known, had a propensity toward violence, sexual harassment, or dishonesty.