Glossary

The language of insurance can be quite complex and confusing. Below are some commonly used insurance terms and their meanings. Insurance professionals with whom you may come into contact should be prepared to explain these terms. If you don't understand, ask!

This information is for educational purposes only and should not be relied upon to form professional opinions on coverage issues.

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

M

Malfeasance

The doing of an unlawful act, e.g., trespass.

Malicious Mischief

Injury to the rights or property of another with a wicked or perverse intent.

Malpractice

A performance by a professional which is deficient in skill from what might ordinarily be expected of a professional person. The standard of performance to which a professional person will be held is necessarily higher than the standard which an unskilled person would be expected to display.

Manitoba Public Insurance (MPI)*

The government-run insurance company from whom all drivers in Manitoba must purchase mandatory or compulsory car insurance.

Manufacturer's and Contractor's Liability Policy

A policy which provides coverage against the liability arising from the ownership of property or the carrying out of operations. This type of policy does not provide any coverage with respect to the hazards of products or completed operations.

Material Fact*

Information about the subject of insurance, insured risk, that, if known, would change the underwriting basis of the insurance, and which could cause the insurer to refuse the application or charge a higher rate.

Material Misrepresentation*

When a policyholder or applicant makes a false statement of material (important) fact on the application, he or she has committed a material misrepresentation, which may result in loss of coverage.

Merit Rating

A system of rating in which the loss experience of a particular risk is a factor in determining the rate for that risk.

Moral Hazard*

A position taken by an insured that increases the chance of a loss or the seriousness of a loss.

MPI *

See Manitoba Public Insurance.

Multi-Peril Policy*

A package policy, such as a homeowners or business insurance policy, that provides coverage against several different perils. It also refers to the combination of property and liability coverage in one policy. In the early days of insurance, coverages for property damage and liability were purchased separately.

Mutual Insurance Company

Mutual insurance companies are home, car and business insurance companies without stockholders. The owners are the policyholders. It is the policyholders (the owners) who elect the directors of the company.

Mysterious Disappearance

The disappearance of insured property in an unexplained manner. For example, if a ring is left in a public place and the owner returns later to find the ring gone, it is reasonable to assume that the ring has been stolen. However, there is no direct evidence that this is in fact what happened. This would be an example of mysterious disappearance.

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