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MALPRACTICE INSURANCE |
Professional liability
coverage for physicians, lawyers, and other
specialists against suits alleging negligence or
errors and omissions that have harmed clients.
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MANAGED CARE |
Arrangement between an
employer or insurer and selected providers to
provide comprehensive health care at a discount
to members of the insured group and coordinate
the financing and delivery of health care.
Managed care uses medical protocols and
procedures agreed on by the medical profession
to be cost effective, also known as medical
practice guidelines.
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MANUAL |
A book published by an
insurance or bonding company or a rating
association or bureau that gives rates,
classifications, and underwriting rules.
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MARINE INSURANCE |
Coverage for goods in
transit, and for the commercial vehicles that
transport them, on water and over land. The term
may apply to inland marine but more generally
applies to ocean marine insurance. Covers damage
or destruction of a ship’s hull and cargo and
perils include collision, sinking, capsizing,
being stranded, fire, piracy, and jettisoning
cargo to save other property. Wear and tear,
dampness, mold, and war are not included. (See
Inland marine and Ocean marine)
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MCCARRAN-FERGUSON ACT |
Federal law signed in 1945
in which Congress declared that states would
continue to regulate the insurance business.
Grants insurers a limited exemption from federal
antitrust legislation.
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MEDIATION |
Nonbinding procedure in
which a third party attempts to resolve a
conflict between two other parties.
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MEDICAID |
A federal/state public
assistance program created in 1965 and
administered by the states for people whose
income and resources are insufficient to pay for
health care.
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MEDICAL PAYMENTS
INSURANCE |
A coverage in which the
insurer agrees to reimburse the insured and
others up to a certain limit for medical or
funeral expenses as a result of bodily injury or
death by accident. Payments are without regard
to fault.
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MEDICAL UTILIZATION
REVIEW |
The practice used by
insurance companies to review claims for medical
treatment.
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MEDICARE |
Federal program for people
65 or older that pays part of the costs
associated with hospitalization, surgery,
doctors’ bills, home health care, and
skilled-nursing care.
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MEDIGAP/MEDSUP |
Policies that supplement
federal insurance benefits particularly for
those covered under Medicare.
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MINE SUBSIDENCE
COVERAGE |
An endorsement to a
homeowners insurance policy, available in some
states, for losses to a home caused by the land
under a house sinking into a mine shaft.
Excluded from standard homeowners policies, as
are other forms of earth movement.
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MONEY SUPPLY |
Total supply of money in
the economy, composed of currency in circulation
and deposits in savings and checking accounts.
By changing the interest rates the Federal
Reserve seeks to adjust the money supply to
maintain a strong economy.
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MORTALITY AND EXPENSE
(M&E) RISK CHARGE |
A fee that covers such
annuity contract guarantees as death benefits.
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MORTGAGE GUARANTEE
INSURANCE |
Coverage for the mortgagee
(usually a financial institution) in the event
that a mortgage holder defaults on a loan. Also
called private mortgage insurance (PMI).
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MORTGAGE INSURANCE |
A form of decreasing term
insurance that covers the life of a person
taking out a mortgage. Death benefits provide
for payment of the outstanding balance of the
loan. Coverage is in decreasing term insurance,
so the amount of coverage decreases as the debt
decreases. A variant, mortgage unemployment
insurance pays the mortgage of a policyholder
who becomes involuntarily unemployed.
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MORTGAGE-BACKED
SECURITIES |
Investment grade
securities backed by a pool of mortgages. The
issuer uses the cash flow from mortgages to meet
interest payments on the bonds.
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MULTIPLE PERIL POLICY |
A package policy, such as
a homeowners or business insurance policy, that
provides coverage against several different
perils. It also refers to the combination of
property and liability coverage in one policy.
In the early days of insurance, coverages for
property damage and liability were purchased
separately.
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MUNICIPAL BOND
INSURANCE |
Coverage that guarantees
bondholders timely payment of interest and
principal even if the issuer of the bonds
defaults. Offered by insurance companies with
high credit ratings, the coverage raises the
credit rating of a municipality offering the
bond to that of the insurance company. It allows
a municipality to raise money at lower interest
rates. A form of financial guarantee insurance.
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MUNICIPAL LIABILITY
INSURANCE |
Liability insurance for
municipalities.
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MUTUAL HOLDING COMPANY |
An organizational
structure that provides mutual companies with
the organizational and capital raising
advantages of stock insurers, while retaining
the policyholder ownership of the mutual.
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MUTUAL INSURANCE
COMPANY |
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A company owned by its
policyholders that returns part of its profits
to the policyholders as dividends. The insurer
uses the rest as a surplus cushion in case of
large and unexpected losses. |