Likelihood that a given event will occur. In statistics the relative frequency of occurrence, Probability varies between O (the loss will not occur) and I (the loss will occur).
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The chance that a certain event will occur, represented as a number.
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UK: The science of the measurement of chance. In the theory of probability, certainty is represented by unity. The probability of an event that is not certain is a fraction the smaller the chance of the event happening the smaller the fraction. Insurance, by combining large numbers of similar exposure units, can predict the probability of the insured event with greater accuracy than is possible with small groups or individuals. Mortality tables help actuaries predict with a high degree of accuracy the probabilities of males and females dying at each age by observing a large number of lives. See RISK COMBINATION. –
Insurance Encyclopedia
probability (P value)
Chance that an event will occur. The probability theory and statistics are the foundations of insurance.
Probable (or Possible) Maximum Loss (PML)
The worst loss that is likely to occur because of a single event.
Probable maximum loss
See: Estimated Maximum Loss.
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The maximum amount of loss that one would expect under ordinary circumstances, such as fire departments responding or sprinklers working. Used in underwriting and in determining reinsurance limits.
Probable maximum loss (PML)
A property loss control term referring to the maximum loss expected at a given location in the event of a fire at that location, expressed in dollars or as a percentage of total values.
Probable maximum loss (PML) (Property Insurance)
The largest loss that can be expected if all goes as it should, such as smoke detectors working.
Probate
A court process under which property is distributed and the terms of wills are carried out at the owner’s death.
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MEDICAL,USA: Legal proceeding proving a will is genuine and allowing the carrying out of its provisions. Its purpose is to protect the heirs from fraud and embezzlement, ensure creditors of the deceased are paid for any outstanding debts, and oversee payment of federal, state, and local taxes by the estate.
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US: The court supervised process of validating or establishing a distribution for assets of a deceased including the payment of outstanding obligations.
Probate (Legal Terminology)
The dispensation of a deceased person’s assets to his or her creditors, the state, and beneficiaries.
Probate bond (Surety)
A bond written to protect the assets being administrated by another person, sometimes mandated by probate court.
Probation period
The time after beginning date of a Policy during which sickness benefits will not be payable. The purpose of the period, usually 30 days is to eliminate sickness actually contracted before the Policy went into force. Not to be confused with “waiting” or “elimination period.”