Standard Practice for Probable Maximum Loss (PML) Evaluations for Earthquake Due-Diligence Assessments

Importancia y uso:

5.1 This practice is intended for use as a voluntary standard by parties who wish to undertake the seismic risk assessment of properties. The goal is for users to objectively and reliably compare the financial risks of earthquake damage to buildings, or groups of buildings, on a consistent basis.

5.2 This practice is designed to provide requirements for the evaluation of earthquake damage risk so that technical reports prepared for the evaluation and rating of seismic risk of a building(s) will be adequate for use by other entities. Potential users include, but are not limited to, those making equity investments, lending, and financial transactions, including securitized mortgage lending by mortgage lenders, loan servicers, underwriters, rating agencies, and purchasers of bonds secured by the real estate.

5.3 The use of this practice may permit a user to satisfy, in part, their requirements for due diligence in assessing a property's potential for losses associated with earthquakes for real estate transactions.

Subcomité:

E06.25

Referida por:

E2018-24, E2018-24

Volúmen:

04.12

Número ICS:

03.060 (Finances. Banking. Monetary systems. Insurance)