Life Insurance and Life Settlement Terms - M
Monophony
This term means selling limitation on a buyer of a product. In a monophony, the purchaser of a product is limited to reselling the product to only to the original vendor.
Medical Underwriter
An individual or firm that reviews personal and medical information for the purpose of issuing mortality reports and related life expectancy estimates for use in life settlement transactions. Other terms used to describe these concerns comprise LE Provider and Qualified Consulting Physician (QCP).
Maturity of Policy
The policy matures, or disburse a claim, when the insured dies and upon presentation of evidence of the death and the validity of the claim to the insurer.
Material Fact
A fact that is pertinent to an insurance company’s underwriting decision regarding issuing or rating a policy.
Material Misrepresentatio
nIn insurance, a misstatement by an applicant that is pertinent to the insurer’s acceptance of the risk, because, if the fact had been known, the insurer would not have issued the policy or would have issued the policy on a different basis.
Medical Application
An application for insurance in which the proposed insured is required to undergo some sort of medical examination. The results of the medical examination are then reported to the insurance concern.
Misrepresentation
A false or misleading statement made to persuade a prospect to buy insurance. Misrepresentation is a prohibited insurance sales practice.
Misstatement of Age or Sex Provision
A provision that is typically incorporated in term life insurance and annuity policies and that tells how the amount of the policy gain will be adjusted if the age or sex of the insured or the annuitant is incorrectly specified.
Mode of Premium Payment
The occurrence with which premiums are paid (for example, annually, quarterly, monthly).
Modified-Premium Whole Life Insurance
A kind of whole life insurance in which the policyowner pays a lower than usual premium for a specified initial period, like five years. After the first period, the premium increases to a stated amount that is somewhat higher than usual. This elevated premium is then payable for the life of the policy.
Morbidity
Sickness, hurt, or failure of health.
Morbidity Rate
The rate at which sickness, injury, and failure of health happen among a defined group of people. The premium that a person disburses for health insurance is based in part on the morbidity rate for that person’s age group.
Morbidity Table
A chart that shows the rates of sickness and damage occurring among given groups of people categorized by age.
Mortality Charge
The cost of the insurance guard element of a universal life policy. This cost is based on the net amount at jeopardy under the policy, the insured’s risk classification at the time of policy purchase, and the insured’s current age.
Mortality Curve
A line graph that stands for the mortality rates as they change from age to age.
Mortality Rate
The frequency with which death happens or is expected to occur among a defined group of people.
Mortality Table
A chart that displays the incidence of death between a given group of people categorized by age.
Mutual Insurance Company
An insurance concern owned by its policyowners.
Mutualization
The process of converting a stock insurance concern to a mutual insurance company.
Malpractice Insurance
Professional liability coverage for physicians, lawyers, and further specialists against suits alleging negligence or errors and omissions that have harmed clients.
Managed Care
Arrangement among an employer or insurer and selected providers to offer comprehensive health care at a discount to members of the insured group and organize the financing and delivery of health care.
Marine Insurance
Coverage for goods in transit, and for the commercial automobiles that transport them, on water and over land.
Maturity Date
The date when th3 policy is going to mature is known as maturity date.
Mccarran-Ferguson Act
Federal law signed in 1945 in which Congress declared that states would carry on to regulate the insurance business.
Mediation
Nonbinding process in which a third party attempts to resolve a conflict among two other parties.
Medicaid
A federal/state public assistance program created in 1965 and managed by the states for people whose income and resources are insufficient to pay for health care.
Medical Information Bureau
A nonprofit company established to provide information to insurers about impairments that applicants have admitted to, or that other insurers have detected, in connection with preceding applications for insurance.
Medical Malpractice Insurance
Professional liability coverage for physicians, lawyers, and other specialists against suits claiming negligence or errors and omissions that have harmed clients.
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 concerns to review claims for medical treatment.
Medicare
Federal program for people 65 or older that disburses part of the costs related with hospitalization, surgery, doctors’ bills, home health care, and skilled-nursing care.
Medigap/Medsup
Policies that supplement federal insurance gains mainly for those covered under Medicare
.MIB, INC.
A nonprofit organization established to offer information to insurers about impairments that applicants have admitted to, or that other insurers have noticed, in connection with previous applications for insurance. Formerly known as Medical Information Bureau.
Mine Subsidence Coverage
An endorsement to a homeowners insurance policy, obtainable in some states, for losses to a home caused by the land under a house sinking into a mine shaft.
Misrepresentation
A false or misleading statement. (1) In insurance sales, a false or deceptive statement made by a sales agent to induce a customer to purchase insurance is a banned sales practice. (2) In insurance underwriting, a false or deceptive statement by an insurance applicant may provide a basis for the insurer to avoid the policy.
Misstatement Of Age Or Sex Provision
A life insurance, health insurance, and annuity policy provision that describes how policy benefits will be adjusted if the age or sex of the insured has been misstated in the insurance application. Naturally, the benefits payable will be those that the premiums paid would have purchased for the correct age or sex.
Modified Premium Policies
An insurance policy for which the policy holder first pays a lower premium than she would for a alike level premium policy for a specified initial period and then pays a higher premium than she would for a alike level premium policy. Contrast with level premium policies and single premium policies.
Moral Hazard
The possibility that a person can act dishonestly in an insurance transaction.
Morbidity Rate
The rate at which sickness and injury occur within a defined group of people. Insurers base health insurance premiums in part on the morbidity rate for a proposed insured’s age group. Contrast with mortality rate.
Mortality And Expenses (M&E) Risk Charge
A rate that covers annuity contract assures as death benefits.
Mortality Rate
A percentage rate at which death happens between a defined group of people of a specified age and sometimes of a specified gender. Insurer’s base the premiums for life insurance in part on the humanity rate for a proposed insured’s age group.
Mortgage Guarantee Insurance
Coverage for the mortgagee (generally a financial institution) in the event that a mortgage holder defaults on a loan.
Mortgage Insurance
A type of lessening term insurance that covers the life of a person taking out a mortgage. Death benefits provide for payment of the due balance of the loan (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 or business insurance policy, that gives coverage against several dissimilar perils. It also refers to the combination of property and liability coverage in one policy.
Municipal Bond Insurance
Coverage that guarantees bondholders timely disimbursement of interest and principal even if the issuer of the bonds defaults.
Municipal Liability Insurance
Liability insurance for municipalities.
Mutual Holding Company
An organizational structure that gives mutual concerns with the organizational and capital raising merits of stock insurers, while retaining the policyholder ownership of the mutual.
Mutual Insurance Company
A concern 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 huge and unexpected losses.
Minimum Deposit Policy
A Cash Value Life Insurance policy having a first-year loan value that is available to borrow against instantly upon payment of the first-year premium. This is not the case with most Life Insurance policies, the main reason being high first-year expenses.
