An estimate of the most likely maximum loss that could be paid out on an exposure. Special attention is given to the loss prevention measures the insured takes.
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An underwriter’s estimate of the probable maximum loss to be suffered on an exposure being considered, with attention given to the expected level of loss prevention activities on the part of the insured.
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The underwriter’s calculation of probable maximum loss.
Insurance Encyclopedia
Loss Expense Reserve
Another name for claims reserve. The expression is also often used in association with the reserve deposited by a reinsurer with the cedant to cover in part outstanding claims (exact terms would indicate which party received the investment income on associated assets).
Loss experience
What the loss history has been on a particular line or book of business.
Loss exposure
A set of circumstances presenting the possibility of loss, whether or not the loss actually occurs.
Loss Exposure for Property
Exposure to loss from the damage, destruction, or taking of property.
Loss Financing
See: ‘Risk financing.’
Loss frequency
How often a loss occurs over a given space of time.
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The probabilities of various types of losses
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The total amount of times that a loss occurs in a particular time frame.
Loss history
The historical record of losses for a specific entity or group of entities.
Loss in Excess of Policy Limits
An amount of loss which exceeds the original policy limits, but is otherwise covered under the policy, for which the insurer is potentially responsible by reason of its action or omissions, including failure to settle within the policy limits, in defending the insured under the policy. Typically an Excess Policy Limits loss is awarded by a court after an insured brings suit against its insurance carrier.
Loss In Progress Rule
Insurance can only indemnity an insured against risks of loss that are both unknown and unexpected. If a loss is already in progress at the time the policy is acquired the loss is no longer fortuitous but a rather a certainty. The Loss in Progress Rule prohibits recovery for a non-fortuitous loss.