Types of insurance loss Flashcards
1
Q
What are the types of insurance loss (3)?
A
Maximum Probable Loss
Maximum Possible Loss
Maximum Foreseeable Loss
2
Q
What is Maximum Probable Loss?
A
The largest loss the underwriter considers probable.
3
Q
What is Maximum Possible Loss?
A
The worst loss that could possibly occur because of a single event, but assumes protective controls will operate as intended.
4
Q
What is Maximum Foreseeable Loss?
A
The worst loss that can be foreseen due to a single event.
