Insurance Definitions

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MALICIOUS DAMAGE CLAUSE:   A clause published by the Institute of London Underwriters for use in a cargo policy that is subject to the Institute Cargo Clauses (1982) B or C. It adds the risks of malicious acts, vandalism and sabotage to the cargo policy.

MALPRACTICE INSURANCE:  A professional liability coverage that insures physicians, lawyers and other specialists against suits alleging their negligence.

MANAGED CARE:  A health plan that places limits on which treatments and which doctors, hospitals and other providers a member can use and still receive full coverage. Generally, under managed care an insurer negotiates lower fees with doctors, hospitals, or laboratories who join in a network that members of the plan are encouraged to use. Frequently, members of a managed care plan can use health care providers outside their network, but they must pay a greater share of the fees.

MANUAL RATES:   Usually the published rate for some unit of insurance. An example is the Workers Compensation Manual where the rates shown apply to each $100 of the payroll of the insured, $100 being the unit.

MAR POLICY:   A market term for the form of marine policy used by Lloyd's and the London company market. It is a basic contract form to which the conditions agreed by the insurers subscribing a marine insurance contract are attached.

MARINE INSURANCE:  Insurance coverage for goods in transit, and for the vehicles that transport them, over waterways, over land, and in air.

MARKET VALUE CLAUSE:   A provision that may be used in property damage insurance form covering some risks which obligates the insurance company, in the event of loss, to pay the established cash selling price of the destroyed or damaged stock, rather than the actual case value as provided in the Standard Fire Policy.

MATERIAL FACT:  Anything affecting an insurance contract significant enough to change the agreement between the insurance company and the policyholder.

MEDICAID:  A federal/state program that helps pay for health care for the needy, blind or disabled and for low-income families with children.

MEDICARE:  A federal health care program for people age 65 and over, and for the disabled.

MEDIGAP:  Insurance coverage sold by private insurers to supplement federal insurance benefits and expenses not covered under the federal Medicare program.

MINIMUM PREMIUM:   The smallest premium which an insurance company will accept for writing a particular policy or bond for a designated period.

MISREPRESENTATION:  An incorrect statement made about a material fact that, if made deliberately and with intent to deceive, could cause the insurance contract to become null and void.

MITIGATE:  To make less severe; steps to eliminate further damage after a loss occurs.

MORTGAGE INSURANCE:  Life insurance that pays the balance of a mortgage if the mortgagor (insured) dies.

MORTGAGEE:  The person who has loaned his money to another and taken the security of the property in exchange.

MOTOR TRUCK CARGO - OWNER'S FORM:   This form insures the owner of a truck against loss to his own property while being transported. It pays for the loss or damage of cargo for the perils insured against, regardless of the legal liability.

MOTOR TRUCK CARGO - TRUCKER'S FORM:   This form indemnifies the policyholder, a trucker, for loss or damage resulting from his legal liability as a carrier while transporting the property of others. I does not insure against any loss for which he is not legally liable.

MYSTERIOUS DISAPPEARANCE:  The disappearance of insured property in a mysterious, unexplained manner.