The largest possible loss that could occur given the worst combination of circumstances. Under a fire policy the worst case scenario would be a fire in circumstances where the automatic sprinklers and fire extinguishers failed, and the fire brigade came late to the scene. A further coincidence might be a fully stocked warehouse containing high value combustible goods. Compare with estimated maximum loss (EML).
Insurance Encyclopedia
Maximum Probable Loss (MPL)
See: ‘Loss, Maximum estimated.’
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UK: the largest loss thought probable under an insurance policy; normally applied to material damage risks where the total sum insured is not considered to be at risk from one loss event
Maximum Probable Yearly Aggregate Loss
The largest aggregate rupee loss that is likely to occur during the year. This aggregate loss depends upon the number of occurrences per year as well as their severity.
Maximum Retrospective Premium
The highest premium which would be required for workmen’s compensation Insurance under retrospective rating plan.
Maximum retrospective premium (Liability Insurance/ Workers Compensation)
Under a retrospective rating plan, the maximum amount the insured will be required to pay.
Maximum tax base
Annual dollar amount above which earnings in employment covered under the health insurance (HI) program are not taxable. Beginning in 1994, the maximum tax base was eliminated under HI. Also called contribution base .
Maximum taxable amount of annual earnings
See: maximum tax base .
Maximum Value Insurance
A system used for fire insurance in some trades whereby the sum insured on stock represents the maximum amount at risk at any one time. A discount is allowed off the premium but no adjustment is made if the stock falls short of the maximum value.
Maximums
Greatest amount an insurance carrier will pay for a specific benefit or policy during a specified time period.