What is Prize Indemnity Insurance Prize indemnity insurance is insurance for promotional events in which companies award attractive and expensive prizes to winners. They help offload the substantial risk involved in having to pay out the reward. Typical prizes at such events are cars, vacations or large cash payouts. Prize indemnity insurance is also known
What Is a Probability Distribution? A probability distribution is a statistical function that describes all the possible values and likelihoods that a random variable can take within a given range. This range will be bounded between the minimum and maximum possible values, but precisely where the possible value is likely to be plotted on the
What Is Probable Maximum Loss (PML)? Probable maximum loss (PML) is the maximum loss that an insurer would be expected to incur on a policy. Probable maximum loss (PML) is most often associated with insurance policies on property, such as fire insurance or flood insurance. The probable maximum loss (PML) represents the worst-case scenario for
What Are Probable Reserves? Probable reserves are crude oil reserves calculated to be at least 50 percent likely to be recovered through drilling. Recovery probabilities help estimate the present and future value of assets owned or operated by firms in the oil and gas sector. Key Takeaways Probable reserves are oil deposits with at least
What Is Probate? Probate is the process completed when a decedent leaves assets to distribute, such as bank accounts, real estate, and financial investments. Probate is the general administration of a deceased person’s will or the estate of a deceased person without a will. An executor is commonly named in the will or an administrator, if
What Is Probate Court? Probate court is a segment of the judicial system that oversees the execution of wills as well as the handling of estates, conservatorships, and guardianships. Probate court also handles the commitment of a person with psychiatric disabilities to institutions designed to help them. Probate court ensures that a will is executed
What Is a Problem Loan? In the banking and credit markets, a problem loan is one of two things: A commercial loan that is at least 90 days past due or a consumer loan that is at least 180 days past due. In either case, this type of loan is also referred to as a
DEFINITION of Processing Date A processing date is the date (month, day and year) when a merchant’s bank processes a credit or debit card transaction that has been authorized between a merchant and a customer. Processing is a broad term that describes the multi-step process of transferring funds from a customer to a merchant whenever a
What Is Procurement? Procurement is the act of obtaining or purchasing goods or services, typically for business purposes. Procurement is most commonly associated with businesses because companies need to solicit services or purchase goods, usually on a relatively large scale. It can also include the overall procurement process, which is critically important for companies leading
What Is a Prime Cost? Prime costs are a firm’s expenses directly related to the materials and labor used in production. It refers to a manufactured product’s costs, which are calculated to ensure the best profit margin for a company. The prime cost calculates the direct costs of raw materials and labor that are involved in
