I am reading the book "Distributions: Theory and Applications" by Duistermaat and Kolk. In chapter 8, Definition 8.5., they say that a family of semi-norms $\mathcal{N}$ is separating if
For every $x\neq 0$, there exists an $n\in \mathcal{N}$ such that $n(x)\neq 0$.
For every $n,m \in \mathcal{N}$, there exists a $p\in \mathcal{N}$, such that $n(x),m(x)\le p(x)$, for all $x$.
However, in every other source I looked at, only the first requirement was stated. Do the authors include the second requirement because given a family of semi-norms that satisfies only the first, we can always extend it to one that also satisfies the second, by say including all finite sums?
Yes, you've got it, exactly. Probably for some technical reason they want to have the collection of seminorms be closed under positive-real linear combinations, etc.