Insurance Glossary

MALPRACTICE INSURANCE

Professional liability insurance that protects physicians, lawyers, and other professionals against claims alleging negligence, errors, or omissions that cause harm to clients or patients.

MANAGED CARE

A health care delivery system in which employers or insurers contract with selected providers to offer comprehensive medical services at reduced costs while coordinating care through established medical guidelines.

MANUAL

A reference publication issued by insurers or rating organizations that outlines insurance rates, classifications, underwriting rules, and policy guidelines.

MARINE INSURANCE

Insurance coverage for ships, cargo, and goods in transit over water and, in some cases, land. It protects against risks such as collision, sinking, fire, piracy, and jettisoning cargo, but excludes wear and tear, mold, and war.

MCCARRAN-FERGUSON ACT

A federal law enacted in 1945 that affirms state authority to regulate insurance and grants insurers limited exemptions from federal antitrust laws.

MEDIATION

A nonbinding dispute resolution process in which a neutral third party assists opposing parties in reaching a mutually acceptable agreement.

MEDICAID

A joint federal and state public assistance program that provides health coverage to individuals and families with low income and limited resources.

MEDICAL PAYMENTS INSURANCE

Coverage that reimburses medical or funeral expenses resulting from accidental bodily injury or death, regardless of fault.

MEDICAL UTILIZATION REVIEW

A process used by insurers to evaluate the necessity, appropriateness, and efficiency of medical services provided to insured individuals.

MEDICARE

A federal health insurance program for individuals aged 65 and older, and certain younger individuals with disabilities, covering hospitalization, medical care, and related services.

MEDIGAP / MEDSUP

Private insurance policies designed to supplement Medicare coverage by paying expenses not covered by Medicare, such as deductibles and copayments.

MINE SUBSIDENCE COVERAGE

An endorsement to homeowners insurance that covers damage caused by the collapse of land over underground mines, available only in certain states.

MONEY SUPPLY

The total amount of money in circulation and deposits within an economy. The Federal Reserve manages the money supply through interest rate and monetary policy adjustments.

MORTALITY AND EXPENSE (M&E) RISK CHARGE

A fee charged in annuity contracts to cover insurance guarantees such as death benefits and administrative expenses.

MORTGAGE GUARANTEE INSURANCE

Insurance that protects lenders against losses if a borrower defaults on a mortgage loan, commonly known as private mortgage insurance (PMI).

MORTGAGE INSURANCE

A form of decreasing term life insurance that pays off the remaining mortgage balance if the borrower dies. Some policies also cover mortgage payments during involuntary unemployment.

MORTGAGE-BACKED SECURITIES

Investment-grade securities backed by pools of mortgage loans, with investor payments funded by mortgage principal and interest payments.

MULTIPLE PERIL POLICY

A package insurance policy that provides coverage against multiple risks, commonly combining property and liability coverage in a single contract.

MUNICIPAL BOND INSURANCE

Insurance that guarantees timely payment of principal and interest on municipal bonds, improving the issuer’s credit rating and reducing borrowing costs.

MUNICIPAL LIABILITY INSURANCE

Liability insurance coverage designed to protect cities, towns, and other municipal entities against claims for bodily injury or property damage.

MUTUAL HOLDING COMPANY

A corporate structure that allows a mutual insurance company to form a holding company, enabling access to capital markets while preserving policyholder ownership of the operating insurer.

MUTUAL INSURANCE COMPANY

An insurance company owned by its policyholders, which may return profits to them as dividends while retaining surplus to cover unexpected losses.