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MALPRACTICE
INSURANCE - Coverage for
liability for acts of professionals, e.g., physicians,
dentists, druggists.
See
also Professional Liability Insurance.
MARGIN CLAUSE
- Under a blanket policy with one aggregate sum insured,
the margin clause limits the maximum amount payable on
any one item by a specified percentage of the declared
value of the particular item, i.e. a 10% margin clause
limits the maximum payable on a particular item to 110%
of the declared value of the item.
MARKET VALUE
- The price for which something would sell, especially
the value of certain types of assets, such as stocks and
bonds. It is based on what they would sell for under
current market conditions. For example, common stock
market value would be the price of the stock as of a
specified date.
MATERIAL
MISREPRESENTATION - The
policyholder / applicant makes a false statement of any
material (important) fact on his/her application. For
instance, the policyholder provides false information
regarding the location where the vehicle is garaged.
MORAL HAZARD
- A condition of morals or habits that increase the
probability of a loss from a peril.
MORTGAGEE
- The creditor to whom a mortgage
is given and who lends money on the security of the
value of the property mortgaged.
MORTGAGOR
- The debtor who receives money
and in turn grants a mortgage on his property as
security for a loan.
MORTGAGE CLAUSE
- A clause in an insurance policy
which stipulates the rights and obligations of the
insurer and the mortgagee. The main characteristics of
this clause are that the mortgagee is granted protection
in the event a loss is denied due to the actions of the
insured (provided that the mortgagee was not aware of
the insured’s wrongful action) and, in return, the
mortgagee accepts responsibility to advise the insurer
of any misrepresentation or change in risk of which the
mortgagee is aware. The clause also warrants that a
mortgagee will receive notice of any cancellation of, or
material change in, the policy. |
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