Glossary

 
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Malpractice Insurance

Is a professional liability insurance that offers protection to (for example) health care providers against patients suing them, claiming that they were harmed by a physician's negligence or that a physician had made intentionally harmful treatment decisions.

 

Managed Care Plan

A Managed Care Plan is a form of health insurance. It is an arrangement between an employer or insurer that has contracts with health care providers, providing care for members at reduced costs. The providers make up the plan's network. How much care the plan will pay for depends on the network's rules which are usually in the form of protocols and procedures agreed by the medical profession to be cost effective.

 

Master Policy

Is an insurance policy that provides coverage to employees or members on a group basis. Each individual receives a certificate, as evidence of membership, which summarizes the benefits covered under the policy.

 

Maturity Date

Is the date at which a permanent life insurance policy ends and any cash value is paid to the policy owner. Some policies have an extended maturity date that continues coverage beyond age 100.

 

Mediation

Is a type of legal procedure that attempts to bring about a peaceful settlement between two or more disputants through the objective intervention of a neutral arbitrator. Mediation can be binding or non-binding.

 

Medicaid

Is a joint federal and state program created in 1965 that helps low-income individuals or families pay for the costs associated with long-term medical and custodial care.

 

Medicare

Is a federal program for individuals over the age of 65 who have been a U.S. citizen or permanent legal resident for a minimum of five years. It pays a portion of the costs associated with their health care including, hospital stays, surgery, home care and nursing care.

 

Minimum Premium

Is the least amount of premium needed to pay on a policy in order to prevent the policy from lapsing.

 

Modal Premium

Is a premium with scheduled payment due dates (typically monthly, quarterly, semi-annually, annually).

 

Mode of Premium Payment

Is the frequency of premium payments during the policy year (monthly, quarterly, semi-annual, or annual mode).

 

Modified Endowment Contract (MEC)

Is a life insurance policy which is funded faster than the Seven Pay test as defined by the Internal Revenue Code section 7702A. A Modified Endowment Contract receives a less favorable tax treatment of pre-death distributions than life insurance policies which comply with the Seven Pay test.

 

Money Market

Is a segment of the financial market in which financial instruments with high liquidity and very short maturities are traded. They are typically short-term debt securities, including, banker's acceptances, commercial paper, repos, negotiable certificates of deposit and Treasury Bills, with a maturity of one year or less and often 30 days or less. They are usually safe, highly liquid investments.

 

Monthly Anniversary Day ("Monthiversary")

Is the day of the month, detailed in the Policy Specifications, when Monthly Deductions are made and interest is credited. If not a business day, then the charges will be deducted on the preceding business day.

 

Monthly Deduction

Is the (tax deductible) amount subtracted from the Cash Value on each Monthly Anniversary Day for expenses and the Cost of Insurance.

 

Mortality

Is a measure of the number of deaths per year.

 

Mortality and Expense Charge

Is a fee charged for a guarantee that annuity payments will continue for life.

 

Mortality and Expense Risk (M&E) Rate

Is a daily charge which is calculated as a percentage of the assets of the Separate Account and is considered as a mortality and expense risk charge. The mortality risk assumed is that insureds may live for a shorter period than expected and, as a result, a greater amount of death benefit will be due. The expense risk assumed is that expenses incurred in issuing and administering the policies will be greater than estimated.

 

Mortality Assumption

 

Mortality Table

Is a statistical table containing the death rate at each age, which is typically expressed as a per thousand amount.

 

Mutual Company

Is a company whose management is governed by a board elected by the policyholders. Mutual companies generally issue participating insurance. As the company’s clients are typically also its owners, they are entitled to receive profits or income generated by it.

 
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