Insurance Glossary: M

Question: What is Malicious Mischief?

Answer: Malicious mischief is intentional and willful destruction or vandalism of personal property of other.

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Question: What is Malpractice?

Answer: Malpractice is the failure to act or acting improperly by a professional caregiver of the human body.

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Question: What is Malpractice Insurance?

Answer: Malpractice insurance is a form of liability coverage against failure to act or acting improperly by a professional caregiver of the human body.

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Question: What is Managed Care?

Answer: Managed care is a type of health insurance program that places limits on the number and type of services the insured can take advantage of. This lowers the cost of services overall because redundancy between health and workers compaensation is reduced.

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Question: What is a Managing General Agent (MGA)?

Answer: A Managing General Agent (MGA) is an individual or organization granted authority to act for an insurance company in performing certain functions for it.

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Question: What is a Manual?

Answer: A manual is a book or series of books or electronic instructions necessary to properly write and maintain policies according to insurance company guidelines.

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Question: What are Matching Contributions?

Answer: Matching contributions is an agreement between the employer and employee to provide funds to the the 401(k) pension plan. The matching amount is usually capped at a certain percentage of the employee’s income.

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Question: What is Material Misrepresentation?

Answer: Material misrepresentation is a significant error, omission or false statement on a policy application that could cause coverage to be legally rescinded. Misrepresenting the date of a speeding ticket is probably not material on an auto insurance application. Forgetting to mention three DWIs (DUIs) could void coverage.

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Question: What is a Maternity Benefit?

Answer: In health insurance, the maternity benefit is for pregnancy and childbirth expenses. Coverage varies between a set amount, the actual incurred fees by the insured, and additional benefits such as childcare.

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Question: What is Mature?

Answer: Mature is the moment at which the life insurance policy has the benefits available either then or once the insured dies.

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Question: What is a Maximum Disability Income Policy?

Answer: Maximum disability income policy is type of disability insurance that has a maximum benefit for a single claim but not for multiple claims.

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Question: What is Maximum Possible Loss (MPL)?

Answer: Maximum Possible Loss (MPL) is the largest probable property loss by the insured perils (usually one fire). Normally 100% for most smaller risk. Larger buildings could be split into several fire divisions by fire control devices.

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Question: What is Medicaid?

Answer: Medicaid is a federal health insurance program that provides medical assistance for those below a specified income bracket.

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Question: What is Medical Expense Insurance?

Answer: Medical expense insurance pays for medical, hospital, and surgical expenses.

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Question: What is a Medical Savings Account?

Answer: Medical Savings Account or MSA is a health insurance plan, which pairs a high deductible medical insurance product with a tax-deferred savings account.

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Question: What is Medicare?

Answer: Medicare is a federal health insurance program that provides medical assistance for Americans aged 65 and over.

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Question: What is a Medicare Advantage Disenrollment Period?

Answer: Medicare Advantage Disenrollment Period or MADP is a period of time each year from January 1 through February 14 during which you can leave a Medicare Advantage plan and return to Original Medicare.

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Question: What is a Medicare Supplement Policy?

Answer: A medicare supplement policy is an additional health insurance designed to supplement the costs of medical services and prescriptions which are not covered by Medicare.

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Question: What is Medigap?

Answer: Medigap is additional health insurance sold in the private sector designed to supplement the costs of medical services and prescriptions which are not covered by Medicare or other federal healthcare programs.

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Question: What is Minimum Premium?

Answer: A minimum premium is the least amount of payment for a policy period or part of policy period.

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Question: What is Misrepresentation?

Answer: Misrepresentation is misleading underwriters’ decisions by directly or indirectly lying.

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Question: What is a Misstatement of Age Provision?

Answer: The misstatement of age provision means that the insured’s age must be stated correctly under a life insurance policy. If it is not, then the rates or benefits are adjusted higher or lower to reflect the correct age.

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Question: What is Mobile Home Insurance?

Answer: Mobile home insurance is designed to meet the needs of mobile home owners or occupants. Includes coverage for physical damage to the home and contents plus personal liability.

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Question: What is Modified Life Insurance?

Answer: Modified life insurance is a type of policy in which the premium rates are adjusted to be lower for the first three to five years. The premiums are then raised after this period to the needed average.

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Question: What is a Monoline Policy?

Answer: A monoline policy covers only one kind of insurance, such as auto and/or home.

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Question: What is a Monopolistic State Fund?

Answer: A monopolistic state fund is a state-controlled workers compensation plan (like North Dakota’s) which writes insurance while prohibiting private insurers from doing so.

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Question: What is Moral Hazard?

Answer: A moral hazard is a mental or financial state of an insured which increases the probability of loss under an insurance contract.

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Question: What is Morbidity Rate?

Answer: The morbidity rate is the number of deaths that occur from a specific illness within a certain period of time. This is then used to set life insurance rates.

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Question: What is a Morbidity Table?

Answer: A morbidity table displays the accident and illness rates for each age and gender group.

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Question: What is Mortality Charge?

Answer: A mortality charge is a rate included in the annual premium which is the cost of the life insurance protection. That rate increases as the insured ages.

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Question: What is Motor Truck Cargo?

Answer: Motor truck cargo is an insurance contract which indemnifies a trucking company, or truck owner, against physical loss to the property they are transporting.

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Question: What is a Motor Vehicle Report (MVR)?

Answer: A report of moving violations kept by individual states.

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Question: What is Motorcycle and Motor Scooter Insurance?

Answer: Motorcycle and motor scooter insurance covers exposures for physical damage and/or liability.

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Question: What is a Musical Instrument Floater?

Answer: A musical instrument floater is an insurance contract designed to insure musical instruments against loss or damage due to insured perils.

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Question: What are Mutual Insurance Companies?

Answer: Mutual insurance companies have no shareholders. Its assets are owned by its policyholders.

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