Glossary

A network is an entity that negotiates discounted fees with medical providers and then passes part of the discount to insurers or employers, which pay for services provided to persons who access providers through the network.

For life insurance policies, the net cash surrender value is the cash surrender value less any outstanding loans and/or surrender charges.

Net interest earned is the amount of interest earned by an insurer on its investments, after deducting investment expenses but before federal income taxes.

The net level premium is the pure mortality cost of a life insurance policy from age of entry to maturity date.

The net level premium reserve is a premium reserve established for level premium ordinary life insurance policies in their initial years of coverage to offset inadequate premiums charged in later years.

A net line is the amount of coverage an insurer retains on a specific risk after deducting reinsurance.

Net loss is the amount of loss sustained by an insurer after deducting collectible reinsurance, salvage, and subrogation recovery.

Net loss reserves are reserves for losses within the risk limitation.

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).