We hope that our extensive glossary of common (and some not-so-common)
insurance terms and phrases proves helpful to you! Simply start
below by choosing the first letter of the word or phrase you want to
learn more about.
A - B - C - D - E - F - G - H - I - J - K - L - M
N - O - P - Q - R - S - T - U - V - W
MALPRACTICE INSURANCE - Professional liability
coverage for physicians, lawyers, and other specialists against
suits alleging negligence or errors and omissions that have harmed
clients.
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.
MANUAL - A book published by an insurance or bonding company
or a rating association or bureau that gives rates, classifications, and underwriting
rules.
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)
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.
MEDIATION - Nonbinding procedure in which a third party attempts
to resolve a conflict between two other parties.
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.
MEDICAL MALPRACTICE INSURANCE - See Malpractice
insurance
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.
MEDICAL UTILIZATION REVIEW - The practice used by insurance
companies to review claims for medical treatment.
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.
MEDIGAP/MEDSUP - Policies that supplement federal insurance
benefits particularly for those covered under Medicare.
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
insurance policies, as are other forms of earth movement.
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.
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).
MORTGAGE INSURANCE
- A form of decreasing term
life 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 life 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. (See Term
insurance)
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.
MULTIPLE PERIL POLICY
- A package policy, such
as a homeowners insurance 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. (See Financial
guarantee insurance)
MUNICIPAL LIABILITY INSURANCE - Liability insurance
for municipalities.
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.
MUTUAL INSURANCE COMPANY - 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. |
