General

MLIRB.
Multi-Line Insurance Rating Bureau.

Malicious Mischief.
Similar to vandalism. Purposely damaging the rights or property of another. See also V&MM.

Malinger.
To feign a disability for the purpose of continuing to collect benefits longer than actually necessary.

Maloney Act.
A 1938 amendment to the Securities Exchange Act of 1934. The Maloney Act established the National Association of Security Dealers (NASD) as a self regulatory organization (SRO) for those involved in the sale of securities.

Manager.
A common title for the head of an agency that is operated as a branch office, as opposed to being operated as a agency. The manager is a salaried employee, usually with an incentive bonus based on the agency's volume.

Mandatory Valuation Reserve.
A reserve required by a state law to offset any declines in the valuation of securities listed as admitted assets.

Manual.
A book giving rates, classifications, and underwriting rules for some line of insurance. An example would be the Automobile Manual which gives such information for Automobile Insurance.

Manual, Compensation.
where the rates shown apply to each $100 of the payroll of the insured, $100 being the "unit."

Manuscript Policy.
A policy written to include specific coverages or conditions not provided in a standard policy. It is often prepared by a large brokerage house for a large account, and it must conform to state laws. In the event of a dispute over policy language, the contract of adhesion doctrine is modified.

Market Risk.
A risk experienced by those who invest in securities which is the risk of possible loss of investment since there are no guarantees associated with such investments.

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. See also Actual Cash Value.

Marketing Representative.
See Special Agent.

Mass Merchandising.
A technique whereby a group of people, usually employees or members of a union or trade association, insure with one company. Premiums are collected and remitted to the insurer in a lump sum.

Master Policy.
(1) The policy contract issued to an employer or other entity authorized by state law for a group insurance plan. See also the first definition of Certificate of Insurance. (2) A Property Insurance policy issued to an insured who can issue certificates of coverage to cover the property of others.

McCarran-Ferguson Act.
See Public Law 15.

Mental (or Emotional) Distress.
Usually not covered if a claimant was a bystander to an accident, but usually covered if he was physically involved.

Merit Rating.
A type of rating plan used in several forms of insurance but most commonly in Personal Auto. It is a method whereby the insured's premium will vary up or down depending on his own past loss record.

Minimum Premium.
The smallest amount of premium for which an insurer will issue coverage under a given policy.

Mixed Insurer (or Company).
An insurance company in which the ownership is split among stockholders and policy owners. The term can also be used to indicate an insurer issuing both Life and Health Insurance policies. It is often erroneously used to describe an insurer offering both participating (dividend paying) and nonparticipating plans.

Mode of Premium Payment.
The method of premium payment (mode) elected by the policy owner. Modes generally available are monthly, quarterly, semiannually, and annually.

Monoline Policy.
Any insurance coverage written as a single line policy. Contrast with Multiple Line or Package policy.

Moral Hazard.
A condition of morals or habits that increases the probability of loss from a peril. An extreme example would be an individual who previously burned his own property to collect the insurance.

Morale Hazard.
Hazard arising out of an insured's indifference to loss because of the existence of insurance. The attitude, "It's insured, so why worry," is an example of a morale hazard.

Mutual Fund.
An investment company that raises money by selling its own stock to the public. It then invests the proceeds in other securities. and the value of its own stock fluctuates with its experience with the securities in its portfolio. Mutual funds are of two types: (1) Open-end, in which capitalization is not fixed and more shares may be sold at any time. (2) Closed-end, in which capitalization is fixed and only the number of shares originally authorized may be sold.

Mutual Insurer.
An incorporated insurer without incorporated capital owned by its policyholders. Although mutual insurers do distribute their earnings to their policyholders in the form of dividends, the term should not be used in a sense that makes it synonymous with participating. In most jurisdictions, a mutual insurer is free to issue nonparticipating insurance if it chooses and a stock insurer is free to issue participating insurance. Contrast with Stock Insurer.

Mutual Insurer Policy.
Insurance issued by a mutual insurer.

Mutual Investment Trust.
See Mutual Fund.

Mutualization.
The process of converting a stock insurer to a mutual insurer, accomplished by having the insurer buy stock and retire it.

Multi-Peril Policies.
Policies which cover a number of perils, such as fire, burglary, and liability, in a single contract.

Multiple Line Policy.
A policy that includes several different coverages such as Property, Liability, and Crime. Any personal or commercial package policy.

Mutual Benefit Association.
An organization offering benefits to members on a plan under which no fixed premiums are paid in advance but assessments are levied on members to meet specific losses as they occur. See also Assessment Company, Society, or Insurer.