Exam DISC-RM Practice Question 217
Study guide: Exam DISC-RM
A loss control engineer surveys a fire-resistive warehouse valued at $40 million, protected by two automatic sprinkler systems and a paid fire department. The insurer's loss estimates use these definitions:
- Normal loss expectancy (NLE): the loss expected with all fire protection in place and operating as intended.
- Probable maximum loss (PML): the loss expected with some impairment of protection, normally one sprinkler system out of service, but not a shutdown of all protection.
- Maximum foreseeable loss (MFL): the worst-case fire, with no sprinkler system working and no effective fire department response, stopped only by fire walls or space separation.
The engineer estimates three figures: (I) $6 million, with both sprinkler systems and the fire department working; (II) $15 million, with one sprinkler system's control valve closed and everything else working; (III) $28 million, with neither sprinkler system working and the fire department not arriving, the fire stopped by an interior fire wall. Which figure is which?
- A) I is the NLE, II the PML, III the MFL
- B) I is the PML, II the MFL, III the NLE
- C) I is the PML, II the NLE, III the MFL
- D) I is the NLE, II the MFL, III the PML
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