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Legal Definitions - net valuation premium

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Definition of net valuation premium

Network Element

In the context of telecommunications law, a network element refers to any component, whether it's a physical facility, a piece of equipment, a software function, or a specific capability, that is used to provide telecommunications services. Essentially, it's any part of the infrastructure or system that enables communication services to be delivered to customers.

  • Example 1: A large telecommunications company operates a vast network of underground fiber optic cables that carry internet data and phone calls across cities. These cables are considered network elements.

    Explanation: The fiber optic cables are physical facilities that are fundamental to providing internet and telephone services, making them essential components of the telecommunications network.

  • Example 2: When you make a mobile phone call, the cellular towers that transmit your signal to another phone are network elements.

    Explanation: Cellular towers are pieces of equipment specifically designed and used to provide mobile telecommunications service, enabling the transmission and reception of calls and data.

  • Example 3: A broadband internet provider offers a feature that allows customers to set up multiple email accounts with their service. The underlying software and server capacity that manage and deliver this email service are considered network elements.

    Explanation: While not a physical cable or tower, the email service represents a "feature, function, or capability" of the telecommunications service (broadband internet) that is provided by the network's infrastructure, thus qualifying as a network element.

Simple Definition

The net valuation premium is the portion of an insurance premium that actuaries determine is necessary to cover the expected future claims and benefits of a policy, discounted to its present value. It represents the pure cost of the insurance risk itself, used for financial valuation purposes, excluding any additional charges for expenses or profit margins.

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