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Malicious Mischief
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Intentional and willful vandalism and destruction of property. In most property policies, it is linked with the vandalism cause of loss.
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Malpractice
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Improper actions or failure to exercise proper skill by a professional or others involved with the care of the human body, such as a physician, dentist, blood bank, etc. Malpractice insurance is a form of liability coverage against such mistakes.
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Manual Rate
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A charge for a unit of insurance set forth in a manual of instructions.
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Marine Insurance
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One of major divisions of insurance (life, health, property, marine, casualty, surety), primarily written for property in transit. If by sea, "ocean" marine or "wet" marine; otherwise, "inland" marine.
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Marine Law
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Section of the federal or national court system which deals with matters pertaining to vessels, crew, and their cargoes navigating on interstate or international waters. Maritime procedures, precedents and rules are different in admiralty courts than in other courts. Also called admiralty court.
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Marine Perils
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The perils which are insured against in a policy of ocean marine insurance. The wording of the marine policy is the result of several hundred years of careful study, judicial interpretation and precedent, and thus such perils have maintained an exact definite meaning in marine insurance.
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Marine Syndicates
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Groups of insurance underwriters which act through a manager to insure certain ocean marine classes of business.
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Market Value Clause
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A clause in which the insurer agrees that the amount it will pay in the event of loss shall be the value of the destroyed merchandise "on the market", which is the amount which could have been realized by selling the merchandise. Obviously, this includes the seller's profit; therefore, the clause is used with caution to avoid the creation of a moral hazard.
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Master
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The commander of a commercial vessel. Popularly the "captain," but the term in admiralty law and marine insurance is "master."
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McCarran-Ferguson Act
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Enacted on March 9, 1945, a law by which Congress granted authority to the states to continue to tax and regulate the business of insurance (after the insurance business had been held by the Supreme Court to be commerce in a landmark case in 1944, and therefore, subject to federal regulation whenever subject to interstate regulation). The act provided further that the antitrust laws should not apply to the extent the business of insurance is regulated by the states, except for coercion, intimidation and boycott. Also known as Public Law 15 (79th Congress, 1945. McCarran-Ferguson Regulation Act: 15 U.S.C. 1011-15)
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Mean
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The average of the accumulation of data, statistics and their results for a given topic.
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Mechanics Permit
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A clause in a policy granting permission to employ workers, such as mechanics, in and around the risk, since their work may increase the exposure. Permission is usually automatically included for such repairs and alterations which are necessary for the maintenance of the premises.
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Minimum Premium
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The lowest flat or earned policy charge for which a policy will be issued or for which coverage will be provided.
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Misrepresentation
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Misleading the company as to material facts affecting a policy or the settlement of a loss, either by directly or indirectly lying. Misrepresentation as to material facts voids policies.
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Mistook
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A mistake.
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Mobile Equipment
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Vehicles not normally designed for use on public roads and not normally required to be licensed.
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Monoline Policy
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A policy that covers only one line of insurance.
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Monopolistic State Fund
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A state-controlled workers compensation plan which writes insurance on such risks within the state and prohibits private insurers from doing so.
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Moral Hazard
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A condition or characteristic by which an insured intends to profit from an insured loss.
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Morbidity Rate
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Rates that have been developed based on the accumulation of statistics and data and that are used to show the percentage or ratio of how often certain types of sickness or illness occur within a given period of time to the classification or a specific group of insureds.
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Morbidity Table
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A listing of data showing the accident or sickness rates of persons of each sex at each age.
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Multi-Line Insurance
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A package of coverages within one policy that provides for more than one line of insurance such as property and liability. Not the same as multi-peril which is a contract that insures more than one peril or cause of loss within the policy. For example, an "all-risk" property policy is multi-peril.
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Multiple Location Policy
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A policy covering real or personal property subject to a single common interest (owner, tenant, or one holding a financial interest or title) at a number of different locations. Such policies are rated under a special plan.
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Municipal Insurance
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Commercial Insurance programs designed specifically to cover cities, town, states, or other types of municipalities.
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Mysterious Disappearance
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The vanishing of insured property in an unexplained manner. Previously there were disputes under theft policies as to whether property mysteriously lost had or had not been stolen. To avoid contention, insurers stated in such policies that mysterious disappearance was presumed to be due to theft. Mere disappearance of property, such as an article dropped from a boat, is not covered, since the disappearance is not mysterious.
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