Glossary
Insurance Terms Glossary
This page provides a glossary of insurance terms and definitions that are commonly used in the insurance business. New terms will be added to the glossary over time.
The definitions in this glossary are developed by the NAIC Research and Actuarial Department staff based on various insurance references. These definitions represent a common or general use of the term. Some words and/or phrases may be defined differently by other entities, or used in a context such that the definition shown may not be applicable.
Terms beginning with M
- Major Medical
- – a hospital/surgical/medical expense contract that provides comprehensive benefits as defined in the state in which the contract will be delivered.
- Malpractice
- – alleged misconduct or negligence in a professional act resulting in loss or injury.
- Managed Care
- – system of health care delivery that attempts to influence the utilization, quality, and cost of services provided.
- Mandated benefits
- – insurance required by state or federal law.
- Market Value
- – fair value or the price that could be derived from current sale of an asset.
- Mechanical Breakdown Insurance
- – 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.
- Medicaid
- – policies issued in association with the Federal/State entitlement program created by Title XIX of the Social Security Act of 1965.
- Medical Malpractice
- – insurance coverage protecting a licensed health care provider or health care facility against legal liability resulting from the death or injury of any person due to the insured's misconduct, negligence, or incompetence.
- Medicare
- – a state assistance program, passed under Title XVIII of the Social Security Amendments of 1965, to provide hospital and medical expense insurance to those over 65 years of age.
- Medicare Advantage Plan
- – an HMO, PPO, or Private Fee-For Service Plan that contracts with Medicare.
- Modified Guaranteed
- – an annuity that contains a provision that adjusts the value of withdrawn funds based on a formula in the contract.
- Moral Hazard
- – personality characteristics that increase probability of losses.
- Morale Hazard
- – negligence or disregard on the part of the insured which could lead to probable loss.
- Morbidity
- – the frequency or severity of disease or illness within a subset of the population.
- Mortality Table
- – chart that shows the death rates of a particular population at each age displayed as the number of deaths per thousand.
- Mortgage Guaranty
- – insurance that indemnifies a lender for loss upon foreclosure if a borrower fails to meet required mortgage payments.
- Mortgage Insurance
- – 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
- Multi-Peril Insurance
- – personal and business property coverage combining several types of property insurance in one policy.
- Mutual Insurance Company
- – a privately held insurer owned by its policyholders, operated as a non-profit that may or may not be incorporated.
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