M

Question 1

Mandated benefits

Answer 1

insurance required by state or federal law.

Question 2

Manufacturers Output Policies

Answer 2

provides broad form coverage of personal property of an insured manufacturer including raw material, goods in process, finished goods and goods shipped to customers.

Question 3

Market Value

Answer 3

fair value or the price that could be derived from current sale of an asset.

Question 4

Mechanical Breakdown Insurance

Answer 4

premiums attributable to policies covering repair or replacement service, or indemnification for that service, for the operational or structural failure of property due to defects in materials or workmanship, or normal wear and tear. (May cover motor vehicles, mobile equipment, boats, appliances, electronics, residual structures, etc.)

Question 5

Minimum Premium Plan

Answer 5

an arrangement under which an insurance carrier will, for a fee, handle the administration of claims and insure against large claims for a self-insured group. The employer self-funds a fixed percentage (e.g. 90%) of the estimated monthly claims, and the insurer covers the remainder.

Question 6

Mobile Homes - Homeowners

Answer 6

homeowners insurance sold to owners occupying the described mobile home.

Question 7

Mobile Homes Under Transport

Answer 7

coverage for mobile homes while under transport for personal or commercial use.

Question 8

Member

Answer 8

a person who has enrolled as a subscriber or an eligible dependent of a subscriber and for whom the health organization has accepted the responsibility for the provision of health services as may be contracted for.

Question 9

Moral Hazard

Answer 9

personality characteristics that increase probability of losses. For example not taking proper care to protect insured property because the insured knows the insurance company will replace it if it is damaged or stolen.

Question 10

Mortgage

Answer 10

a note used to secure a loan for real property.

Question 11

Mortgage Guaranty

Answer 11

insurance that indemnifies a lender for loss upon foreclosure if a borrower fails to meet required mortgage payments.

Question 12

Mortgage Insurance

Answer 12

a form of life insurance coverage payable to a third party lender/mortgagee upon the death of the insured/mortgagor for loss of loan payments.

Question 13

Mortgage-Backed Securities

Answer 13

a type of asset-backed security that is secured by a mortgage or collection of mortgages. These securities must also be grouped in one of the top two ratings as determined by an accredited credit rating agency, and usually pay periodic payments that are similar to coupon payments. Furthermore, the mortgage must have originated from a regulated and authorized financial institution.

Question 14

Multi-Peril Insurance

Answer 14

personal and business property coverage combining several types of property insurance in one policy.

Question 15

Municipal Bond Guarantee Insurance

Answer 15

coverage sold to municipalities to guarantee the principle payment on bonds issued.

Question 16

Municipal Liability

Answer 16

liability coverage for the acts of a municipality.

Question 17

Mutual Insurance Company

Answer 17

a privately held insurer owned by its policyholders, operated as a non-profit that may or may not be incorporated.

Question 18

Mutual Insurance Holding Company

Answer 18

a company organized as a mutual and owning a capital stock insurer or insurers for the benefit of pooling risk for many people, typically those in the same industry.