M - GLOSSARY 1. Market Value: The estimated amount for which an asset or liability should exchange on the valuation date between a willing buyer and a willing seller. 2. Material Fact: Any information that could influence the decision of an insurer to provide coverage or the terms of that coverage. 3. Medical Examination: A physical check-up performed by a medical professional to assess an applicant's health as part of the underwriting process. 4. Medicare: A federal health insurance program primarily for individuals aged 65 and older, as well as some younger people with disabilities. 5. Minimum Premium: The least amount of premium that must be paid to keep an insurance policy in effect. 6. Misrepresentation: Providing false information or omitting important facts that could affect an insurer's decision to issue a policy. 7. Moral Hazard: The risk that a party insulated from risk behaves differently than it would behave if it were fully exposed to the risk. 8. Mortality Rate: The rate at which death occurs in a particular population, used by insurers to calculate life insurance premiums. 9. Mutual Insurance Company: An insurance company owned by its policyholders, who share in the company's profits through dividends or reduced premiums. 10. Marine Insurance: Coverage for loss or damage of ships, cargo, terminals, and any transport by which property is transferred, acquired, or held between points of origin and final destination. 11. Multi-Peril Insurance: A policy that covers a variety of risks or perils, such as fire, theft, and liability, under a single contract. 12. Morbidity Rate: The frequency or proportion with which a disease appears in a population, used by health insurers to predict claims. 13. Medical Payments Coverage: A component of an auto insurance policy that covers medical expenses for the policyholder and passengers after an accident, regardless of fault. 14. Maximum Benefit: The highest amount an insurer will pay for a covered loss. 15. Major Medical Insurance: A type of health insurance that covers the expenses associated with serious illness or hospitalization, often with a high deductible. 16. Mutual Fund: An investment program funded by shareholders that trades in diversified holdings and is professionally managed, often associated with variable life insurance products. 17. Mortgage Insurance: A policy that compensates lenders or investors for losses due to the default of a mortgage loan. 18. Managed Care: A health care delivery system organized to manage cost, utilization, and quality, often associated with health insurance plans like HMOs and PPOs. 19. Manual Rating: The process of setting insurance premiums based on a classification system that considers factors such as age, location, and type of coverage. 20. Mature Policy: A life insurance policy that has reached the end of its term and is due for payout. 21. Mitigation: Steps taken to reduce the severity or likelihood of a loss, often encouraged by insurers to lower premiums or deductibles. 22. Minimum Liability Limits: The lowest amount of liability insurance coverage that a policyholder is required to carry by law. 23. Medical Underwriting: The process of evaluating an applicant's medical history to determine eligibility and pricing for health insurance. 24. Mutualization: The process by which a stock insurance company is converted into a mutual insurance company. 25. Mandatory Insurance: Insurance that is required by law, such as auto liability insurance. 26. Maturity Date: The date on which the principal amount of a bond or other debt instrument becomes due and is repaid to the investor. 27. Marine Cargo Insurance: Coverage against loss or damage of goods while in transit over waterways, land, or air. 28. Medigap: Supplemental insurance for Medicare beneficiaries to cover costs not covered by Medicare, such as copayments and deductibles. 29. Material Damage: Physical damage to property, often covered under property insurance policies. 30. Mutual Recognition: An agreement between countries or jurisdictions to recognize and accept each other's regulatory standards, often relevant in international insurance practices.