Your Free Online Legal Dictionary • Featuring Black’s Law Dictionary, 2nd Ed.

NET INTEREST EARNED

After investment expense and before income taxes, an insurer’s investments average interest amount earned.

NET INVESTMENT

1. In Accounting, in a given period, this is the amount invested as a capital expenditure minus allowance for capital depreciation. 2. In Economics, this the change in total capital stock in

NET LEVEL PREMIUM

Life insurance policy’s pure cost until term-end divided by the year count in-force.

NET LINE

In a reinsurance surplus treaty on a particular risk, the original insurer’s retained insurance amount. Also refers to the an insurer’s maximum loss amount exposure unless reinsured.

NET INCREASE

New policies written and renewed as a count minus policies lapsed or cancelled as a count. The insurer easily calculates to know the total periodic business the insurer has in force.

NET DEBT

Short-term loans plus long-term loans minus cash and cash equivalents equals this amount.

NET MIGRATION RATE

People moving into a country counted minus people moving out of the same country counted. High migration counts (in) or emigration counts (out) can cause unemployment problems in specific areas as either

NET OPERATING INCOME

In an accounting period, operating revenue exceeds operating expenses as this amount. Excluded are extraordinary gains and losses, financial expenses like interest paid, and financial revenue like interest earned.

NET PATIENT REVENUE

Calculated as: inpatient and outpatient revenue services minus expenses. A term in healthcare administration.

NET PREMIUM

In general, any premium with a commission, or expenses, or dividends, or loss coverage subtracted. It is a general term that can have many different meanings. In particular, it is the premium

NET LOSS

in an accounting period total costs and expenses exceeds total revenue by this amount.

NET PROCEEDS

Sale of goods, property, or securities whose transaction cost have been deducted, has an actual amount received.

NET RATE

Premium amount minus appointed dividends. This term also refers to the non-participating policy rate found in a rate book.

NET PURCHASE RECORDING

Recording method for cash discounts or purchases accounting. Its journal entry basis is invoice amount minus expected cash discount. The discount is charged to discounts lost account if the discount is not

Topic Archives:

Disclaimer

This site contains general legal information but does not constitute professional legal advice for your particular situation. The Law Dictionary is not a law firm, and this page does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.