Glossary M 

MDRT See Million Dollar Round Table.

MIB See Medical Information Bureau.

MVR See motor vehicle record.

major medical Coverage for serious or expensive medical cost or hospitalization.

major medical insurance That form of medical insurance designed to supplement a basic medical expense plan in the event of extraordinary medical expenses which the average person cannot pay without great hardship. There is usually a deductible or coinsurance or both involved.

malpractice Professional misconduct or lack of ordinary skill in the performance of a professional act. Malpractice liability covers performance of a professional act. Coverage for malpractice liability is excluded by most public liability policies because it is considered a specialized form of insurance.

manual rates The cost of insurance protection as quoted in a rating manual. May also refer to those rates developed by the application of a recognized rating plan.

market conduct examination An examination, conducted by insurance department examiners, of the business practices and operations of an insurer and its agents. Areas of review may include company operations and management, complaint handling, marketing and sales, producer licensing and conduct, policyholder service, underwriting, and claims.

master contract Issued to the employer under a group insurance plan, and containing all the insuring clauses which define employee benefits. Individual employees participating in the group plan receive individual “certificates,” which seldom repeat all the insuring clauses contained in the master policy.

mature A life policy is mature when the face amount becomes payable during the lifetime of the insured.

maturity The date at which a security, like a bond, is redeemed at face value by the issuer.

McCarran-Ferguson Act A federal law, passed in 1945, affirming that regulation of insurance by the states was in the public interest and exempted insurers from federal law and regulations if the federal laws impaired state regulation.

medical examinations Usually conducted by a licensed physician, the medical examination is part of the application for life insurance. Thus, it becomes part of the policy contract, and is attached thereto. The so-called “non-medical” in reality is a short-form medical report, and is filled out by the agent. Various company rules, such as amount of insurance applied for or already in force, age of applicant, sex, past physical history, date revealed by inspection report, etc., determine whether the examination shall be “medical” or “non-medical.”

medical information bureau (MIB) A clearinghouse that stores information on the health histories of persons who have applied for insurance from subscribing companies. Insurers use this to get more thorough underwriting information.

medical payments coverage A coverage found in auto and liability policies that pays medical expenses to covered (injured) persons without regard to liability.

merit rating A system for measuring the difference of an individual risk by some standard in order to reflect the difference in the rate.

Million Dollar Round Table (MDRT) An association of life insurance agents who produce a million or more in face amount of new insurance in a year. Applicants for membership must be members of the National Association of Life Underwriters.

minimum premium The smallest amount for which an insurance company will issue coverage under a given policy.

mini tail Refers to the provision that automatically extends the reporting period of an expiring CGL “claims-made” policy to 60 days for claims not covered by renewal or replacement policies.

misrepresentation Generally, a misstatement of fact(s) on an application for insurance. Also, a misstatement of coverage made by an agent to an insured.

misstatement of age provision If the age of the insured is misstated in an application for life insurance, the benefit payable is usually adjusted to what the premiums paid would have purchased at the correct age.

monoline policy A policy containing a single coverage part plus the common policy conditions and common declarations.

moral hazard The effect of personal reputation, character, associates, personal living habits, financial responsibility, and environment upon an individual’s general insurability.

morale hazard An insured’s definite indifference to loss. An attitude that increases the probability of loss from a peril. The attitude of “it’s insured, so why worry?” is an example of a morale hazard.

mortality table The instrument used to measure the probabilities of life and death. It can be likened to the march of an imaginary generation through time.

mortgage insurance One of the basic uses for life insurance. So-called because many family heads leave insurance for the specific purpose of paying off any mortgage balance outstanding at their death. Many companies have designed special policies for this purpose. Insurance is generally made payable to a family beneficiary instead of to the mortgagee.

mortgagee The party loaning money toward the purchase of personal property. Usually a bank or other lending institution.

mortgagee clause A clause making the proceeds payable to a named mortgagee, as interest may appear, and stating the terms of the contract between the insurer and the mortgagee.

mortgagor The party borrowing money to purchase property.

motor vehicle record (MVR) The record of an automobile driver’s accidents and/or traffic violations.

mutual funds These are mutually owned funds invested in diversified securities. Shareholders are issued certificates as evidence of their ownership and participate proportionately in the earnings of the fund.

mutual insurer A corporation owned by the policyholders where there are no stockholders. The policyholders elect the board of directors, which appoints the executives who manage the corporation. The company may pay a dividend or give a rate reduction in advance to insureds.