Question

What does "PML" stand for in insurance terminology?

a.

Potential Maximum Loss

b.

Projected Market Liability

c.

Predicted Minimum Loss

d.

Property Maximum Loss

Posted under IC85 Reinsurance Management

Answer: (d).Property Maximum Loss Explanation:"PML" stands for "Property Maximum Loss." It refers to the anticipated maximum property fire loss that could occur, taking into account the normal functioning of protective features. It helps inform underwriting decisions and influences the amount of reinsurance ceded on a risk.

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