Explanation

This question appears to be testing probability concepts related to loss events. Without the complete context of the distribution or parameters (such as whether this follows a Poisson distribution or other probability distribution), I'll provide the most likely reasoning:

"Less than two major loss events" means either 0 or 1 loss event.

Given the options:

• A. 5.3% (too low for cumulative probability of 0 or 1 events)
• B. 22.6% (possible but still relatively low)
• C. 63.3% (most reasonable for cumulative probability)
• D. 75.0% (slightly high for 0 or 1 events)

63.3% is the most logical choice for the cumulative probability of having 0 or 1 major loss events in a year, assuming a typical loss distribution where the probability of 0 events is around 50-60% and the probability of 1 event is around 10-20%, summing to approximately 63.3%.

This would be consistent with a Poisson distribution where λ (average events per year) is around 0.5-0.8, making P(X < 2) = P(X = 0) + P(X = 1) ≈ 63.3%.