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A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
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Market Value:
The value of an asset based on the price a willing buyer would pay and current market conditions.
Master Policy:
A single insurance contract issued to an employer or other entity that provides group insurance to eligible employees or members, typically by issuing a certificate of insurance to such member.
Medical Information Bureau (MIB):
The organization that maintains a secure, centralized computer facility that stores the coded health history of persons who have applied for insurance from subscribing companies in the past. This information is then available to other insurance companies for future insurability evaluations. For more informations, you may visit the MIB website at http://www.mib.com/.
Misrepresentation:
Inaccurate information provided by the applicant during the application process. Providing inaccurate information with the intent to receive a lower premium in considered intent to defraud.
Mortgage Life Insurance:
A type of life insurance that pays the remaining balance of mortgage if the insured dies. This is usually a decreasing term insurance policy where the death benefit decreases over time as the balance on the mortgage decreases.
Mutual Insurer:
An insurer whose policyowners are also owners of the company, entitled to dividends (return of premium) and, in some cases, proxy rights. Mutual companies do not have their stocks trading on the stock exchange.
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Nonassignable Policy:
Prohibits a policyowner from transferring the rights of a policy to a third party.
Nonparticipating Policy (non-par):
Life insurance policy from which the policyowner does not receive dividends from the insurance company's surplus.
Notice of Cancellation:
A written notice stating that the insurer will cancel a policy or that the insured is requesting the cancellation of the policy.
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Offer:
The submission of an application for an insurance policy. If the offer is for life insurance, the first premium payment must be included for the application to be considered an offer.
Offer and Acceptance:
The submission of an application for an insurance policy by the applicant and in the case of a life insurance application, a first premium payment ("Offer"), followed by an issuance of a policy by the insurer ("Acceptance").
Omnibus Clause:
Insurance that covers a third party while driving the insured's automobile with the permission of the insured.
Overinsured:
A circumstance in which the amount of insurance benefits exceeds the value of damages. For life insurance, an applicant considered overinsured will not be offered additional coverage unless the applicant replaces their current coverage.
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