Risk & Insurance Glossary - M

A B C D E F G H I J K L M
N O P Q R S T U V W X Y Z

MACHINERY CLAUSE – A clause in an insurance contract providing that, in case of loss to a machine consisting of several parts, the insurer will not be liable for more than the insured value to the part to which loss occurs.
MAINTENANCE BOND – A bond guaranteeing against defects in workmanship or materials for a stated time after acceptance or work.
MALICIOUS MISCHIEF – Destruction of property because of ill will toward its owner.
MALPRACTICE – Alleged professional misconduct or lack of ordinary skill in the performance of a professional service. A practitioner is liable for damage or injuries caused by malpractice. May apply to physicians, dentists, lawyers, architects, accountants, engineers, etc. Professional liability is a somewhat broader term that includes bodily injury and financial injury.
MANUAL RATES – Premium rates for a given classification of risk, published in a manual; often subject to modification for individual risk. It may also refer to rates developed by the application of a recognized rating plan.
MARINE INSURANCE – (See also INLAND MARINE INSURANCE and OCEAN MARINE INSURANCE)
MARKET VALUE CLAUSE – A provision in an insurance contract which provides that the insurer pay according to the market selling price of the damaged or destroyed property instead of its actual cash value or cost of replacement.
MASTER POLICY – A policy covering a group of risks under which are issued certificates of insurance respecting individual risks of the group.
MATERIAL FACT – An important fact relevant to an insured risk. Concealment of material fact may void a policy. In ocean marine insurance, material facts must be disclosed whether asked about or not.
MAXIMUM FORESEEABLE LOSS (MFL) – (See also MAXIMUM POSSIBLE LOSS and PROBABLY MAXIMUM LOSS)
MAXIMUM POSSIBLE LOSS (MPL) – The largest loss that could possibly happen under the worst circumstances. (See also MAXIMUM FORESEEABLE LOSS and PROBABLE MAXIMUM LOSS)
McCARRAN–FERGUSON ACT – Federal legislation enacted in 1945 permitting insurance to be regulated by the various states.
MERCHANDISE INSTALLMENT FLOATER – A contract insuring the vendor, or the vendor and vendee, against loss to merchandise sold on the installment plan as long as the vendor has an interest in the merchandise.
MERIT RATING – (See also EXPERIENCE RATING)
MINIMUM PREMIUM – The smallest consideration for which a risk is acceptable by the Insurer.
MISREPRESENTATION – Willfully misleading the insurer with regard to information affecting the acceptance of a risk, the issuing of a policy, or the settling of a claim.
MONOPOLISTIC STATE FUND – A state controlled fund to pay workers' compensation claims. No private insurers are allowed. Self–insurance may or may not be permitted.
MORAL HAZARD – Danger of loss from intentional deed or neglect of the insured rather than from physical cause.
MORTALITY TABLE – An actuarial table based on mortality statistics over a number of years.
MORTGAGE CLAUSE – A clause in an insurance contract making the proceeds payable to a named mortgagee, as his interest may appear, and stating the terms of the contract between the insurer and the mortgagee. (See also LOSS PAYABLE CLAUSE)
MULTI–PERIL POLICY – (See also PACKAGE POLICY)
MULTIPLE LINE CARRIER – An insurer that writes more than one kind of insurance; usually used to mean an insurer writing a considerable number.
MUTUAL INSURANCE COMPANY – A corporation of which each insured is a member. The members own the corporation and control it.