The maximum probable loss is the most unlikely maximum amount of damage a peril might cause under typical circumstances.

Question

Quizplus · Accepted Answer

The statement is incorrect. The maximum probable loss represents the largest amount of loss an insurer might face from a single event, factoring in both the frequency and severity of potential losses. It is not the most unlikely maximum amount of damage that a peril might cause under typical circumstances.

The Maximum Probable Loss Is the Most Unlikely Maximum Amount