Insurance Glossary M

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Mail Order Insurer An insurance company that sells insurance policies through the mail, or other mass media, eliminating a need for agents.

Maintenance Bond A bond that guarantees against defects in workmanship or materials for a stated period of time after the acceptance of the completed work.

Major Medical Insurance Health insurance that provides benefits for major illness and injury. Usually characterized by a large benefit maximum ranging up to $5,000,000.00, or no limit. This insurance, above an initial deductible, reimburses the major part of charges for hospital, doctor, private nurses, medical appliances, prescribed out-of-hospital treatment, drugs, and medicines.

Malpractice Improper care, conduct, or treatment by a physician, hospital, or other provider of health care.

Malpractice Insurance Coverage for a professional practitioner, such as a doctor or a lawyer, against liability claims resulting from alleged malpractice while professional services were performed.

Managed Care A health care system that delivers appropriate health care services to covered individuals by arrangements with selected providers.

Manual Rate The premium rate developed for a group insurance coverage from standard rate tables normally referred to as its rate manual.

Marine Insurance A form of insurance primarily concerned with means of transportation and communication, and with goods in transit.

Marital Deduction A reduction of an estate for estate tax purposes, which is available if the decedent is survived by his or her spouse.

Master Policy Two definitions: (1) An insurance policy that is issued to an employer or trustee, establishing a group insurance plan for designated members of an eligible group, or (2) A property insurance policy issued to an insured who may issue certificates of insurance to cover properly of others.

Material Misrepresentation A statement made to the underwriter before acceptance of risk, which is material to his decision in accepting and rating the risk.

Mature When an insurance policy's guaranteed cash value equals the initial death benefit, it is said to "endow" or mature. Whole Life contracts typically endow at the insured's age 100.

Maturity Date The date which the policy endows for its total face amount.

Maturity Value The amount payable under a Whole Life insurance policy if the insured person lives to the last age on the mortality table on which the values of the contract were based.

McCarran-Ferguson Act The Federal Law passed in 1945 stating that continued regulation of the insurance industry by the states is in the public interest and that federal antitrust laws apply to insurance only to the extent that the industry is not regulated by state law.

Medicaid State programs of public assistance to persons whose income and resources are insufficient to pay for health care.

Medical Examination A medical history and exam completed by a doctor that the insurer may require of the applicant during the underwriting process – typically, paid for by the life insurer underwriting the application.

Medical Expense Insurance A type of health insurance that provides benefits for expenses incurred for medical care, such as: expenses of physicians, hospital, nursing, and related health services, and supplies.

Medical Information Bureau (MIB) A data pool service that stores confidential reports on the health histories of persons who, in the past, have applied for insurance from other member companies. Most insurers subscribe to this bureau to get more complete underwriting information.

Medical Payments Insurance A coverage, available in various automobile and liability insurance policies, in which the insurer agrees to reimburse the insured and others, without regard for liability.

Medicare The United States federal government program of Hospital Insurance (Part A) and Supplementary Medical Insurance (Part B) protection provided under the Social Security Act.

Miscellaneous Expenses Any expenses in connection with hospital insurance, hospital charges other than room and board, such as X-rays, drugs, laboratory fees, etc.

Misrepresentation - false or fraudulent omission of information in connection with an insurance application that would affect the acceptance or rating of the policy by the company. This can void a policy. A statutory condition in fire policies deals with misrepresentation.

Mode of Premium Payment The frequency which premiums are paid monthly, quarterly, semiannually, or annually.

Moral Hazard Hazard arising from any nonphysical, personal characteristic of a risk that increases the possibility of loss or may intensify the severity of loss for instance, bad habits, low integrity, poor financial standing.

Mortality The frequency of deaths in proportion to a specific population.

Mortality Rate The number of deaths in a group of people, usually expressed as deaths per thousand.

Morbidity Tables Actuarial statistics showing the frequency and duration of a sickness.

Mortality Table A table showing how many members of a group, starting at a certain age, will be alive at each succeeding age. It is used to calculate the probability of dying in, or surviving through, any period, and for the valuation of an annuity. To be appropriate for a specific group, it should be based on the experience of individuals having common characteristics, such as sex or occupation.

Mortgage Clause ­ a policy condition providing protection in certain circumstances to the mortgagee in the event that the insured fails to comply with policy conditions.

Mortgage Protection Insurance A type of Term Life policy which pays off the balance of a mortgage upon the death of the insured. Typically, the death benefit decreases according to a schedule that fits the declining payoff requirements of the mortgage.

Multi-Year Premium Mode A premium payment option where future annual premiums are paid in advance at a discount.

Multi-Peril Policy A package policy which provides protection against a number of separate perils in one contract.

Mutual Insurance Company An insurance company in which the ownership and control is vested in the policy holders and a portion of surplus earnings may return to policy holders in the form of dividends. No capital stock exists.

Mutual Fund Pooled money from shareholders that is invested in a variety of securities, including stocks, bonds and money market securities. Mutual funds offer the individual investor the advantages of diversification and professional management.