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Machinery Damage Additional Deductible An institute clause, used in hull and machinery policies, which applies a specially agreed deductible additionally to the policy deductible expressed in the standard hull clauses. The additional deductible applies to damage to ship’s machinery arising from certain perils (mainly negligence of the crew and others) specified in the Institute hull clauses attaching to the policy.
Malicious Acts Clause A clause which excludes claims on a hull policy arising from detonation of an explosive or any weapon of war and used by persons acting maliciously or from a political motive.
Malicious Damage Clause A clause published by the Institute of London Underwriters for use in a cargo policy that is subject to the Institute Cargo Clauses (1982) B or C. It adds the risks of malicious acts, vandalism and sabotage to the cargo policy.
Market Value The fair price for which something can be sold in its current condition.
Material Circumstance Any circumstances which would influence the judgement of a prudent underwriter in determining whether to accept a risk and the amount of premium to charge.
Material Representation A statement made to the underwriter before acceptance of risk which is material to his decision in accepting and rating the risk.
Measure of Indemnity The extent of liability of the insurer for loss.
Medical Loss Ratio - Total health benefits divided by total premium.
Misrepresentation A mis-statement of fact made by the assured or his broker to the underwriter, before acceptance of the risk, which misleads the underwriter in assessing the risk. If the representation is material and amounts to misrepresentation it is a breach of good faith.
Moral Hazard A condition of morals or habits that increases the probability of loss from a peril. An example would be an individual who had previously arranged for the theft of his own car to collect the insurance.
Mortgagee The lender in a mortgage contract.
Mortgagor The borrower in a mortgage contract.
Mortgage Insurance Policy - In life and health insurance, a policy covering a mortgagor with benefits intended to pay off the balance due on a mortgage upon the insured's death, or to meet the payments due on a mortgage in case of the insured's death or disability.
Mutual Insurance Companies - Companies with no capital stock, and owned by policyholders. The earnings of the company--over and above the payments of the losses, operating expenses and reserves--are the property of the policyholders. There are two types of mutual insurance companies. A nonassessable mutual charges a fixed premium and the policyholders cannot be assessed further. Legal reserves and surplus are maintained to provide payment of all claims. Assessable mutuals are companies that charge an initial fixed premium and, if that isn't sufficient, might assess policyholders to meet losses in excess of the premiums that have been charged.
