A clause inserted into sliding scale treaties to permit the reinsurer to give notice of termination should a maximum rate become payable in any year and the cedant has the same facility if the minimum rate becomes payable in any year.

In the Lloyd’s annual solvency test on an open year of account, an estimate has to be made of the provision required by a syndicate to cover claims and other adjustments likely to arise from risks accepted during that year. The basis for calculation is laid down in the instructions for the guidance for auditors.

UK: an estimate of the monetary loss which could be sustained by insurers on a single risk as a result of a single fire or explosion considered by the underwriter to be within the realms of possibility (an expression used only in fire, explosion and material damage policies).
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An expression used in Fire, explosion and material damage policies only. An estimate of the monetary loss which could be sustained by insurers on a single risk as a result of a single fire or explosion considered by the underwriter to be within the realms of possibility.
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UK: Estimate of the maximum probable loss developing from an insured peril. It takes account of factors that will lessen the risk, e.g. fire protection, and factors that will increase the risk, e.g. combustible materials. It ignores coincidences such as all protective devices failing simultaneously with serious human error and other untoward circumstances. Insurers use EML (also called probable maximum loss) when fixing their retention on individual risks.