Glossary

Meredith principles are concepts that anchor the workers compensation systems of the 10 provinces and 3 territories of Canada. The principles were contained in the Meredith Report authored by Sir William Meredith in 1913. As outlined in that document, employers fund the workers compensation system in exchange for immunity from lawsuits arising from workplace injury. In trade for giving up their rights to sue employers or other workers protected under the Workers Compensation Act, workers receive benefits if injured, regardless of fault.

Merger and acquisition litigation refers to a type of claim frequently made against the directors and officers of companies involved in merger activity. Litigation often results from these situations because the directors and officers of both the acquiring and the acquired company face a number of conflicts and related obstacles in the event of a merger or similar business transaction. For example, the directors and officers of the company being acquired will be inclined to reject all buyout offers, no matter how favorable they may be for their company's stockholders. This is because such individuals are likely to lose their jobs as a result of the buyout. Similarly, the directors and officers of the acquiring company are confronted with the possibility that its own shareholders could allege that they paid too much for the company they have acquired. Given these (and other) exposures accompanying corporate merger activity, nearly every decision reached by directors and officers under these circumstances may be subject to attack as an alleged violation of their fiduciary duties. Accordingly, by 2010, 87.3 percent of all corporate consolidations were met with a merger objection claim, based on research by Matthew D. Cain and Steven Davidoff Solomon in Takeover Litigation in 2014, February 20, 2015. In response, underwriters of directors and officers liability insurance policies began adding special, higher retentions to their forms, which applied only to claims involving mergers and acquisitions. For example, if a policy contained a $100,000 self-insured retention (SIR), an insurer might impose a $500,000 SIR for merger objection claims.

A merger objection lawsuit is one filed by dissatisfied shareholders of a company that is soon to be or has recently been acquired by another company. Merger objection lawsuits usually name directors and officers of the acquired company as defendants, who shareholders believe have breached their fiduciary duty to protect their interests in the course of negotiating and consummating the merger transaction. Merger objection suits typically assert that the acquisition process was conducted in an unfair manner and that directors and officers may have had conflicts of interest that negatively impacted the structure of the acquisition, all of which operated to the financial detriment of shareholders. The acquired company and its directors and officers are almost always named as defendants in merger objection suits, but the acquiring company along with its directors and officers are also frequently named, particularly if the allegation is either (1) inadequate consideration (i.e., the per-share price shareholders were paid was too low) or (2) conflict of interest (directors/officers were unduly enriched personally by the acquisition). Damages associated with merger objection claims are relatively low (usually less than $1 million) compared with securities class action lawsuits. In addition to settlement amounts, merger objection claims also usually require that the directors and officers of both the acquired and acquiring companies provide more detailed disclosures about the actual merger transaction, along with the individual financial benefit they derive from it. However, from the standpoint of the plaintiffs' attorneys who represent shareholders, the real incentive for bringing merger objection suits is that settlements also typically incorporate monies for these plaintiffs attorneys' fees, which are often substantial, sometimes reaching into the low seven figures.

The #MeToo movement actively and publicly opposes sexual harassment and sexual assault. The #MeToo movement became an international phenomenon in October 2017 with the revelation by numerous women, including several high-profile actors, that movie producer Harvey Weinstein had sexually assaulted them. The #MeToo movement has also underscored the extent to which sexual harassment is a widespread problem in the workplace. For this reason, underwriters of employment practices liability insurance (EPLI) policies (and the risk managers of their insureds) were concerned that the movement could vastly increase their exposure to claims.

Mexico coverage refers to the coverage provided under certain nonstandard automobile policies issued by US insurers for operation of an insured motor vehicle within Mexico, usually limited to a stated number of miles from the US border. Mexico coverage also refers to coverage purchased from a Mexican insurance company for the operation of a motor vehicle within Mexico. In the event of incurred automobile liability, Mexican law recognizes only coverage written by Mexican insurance companies as proof of financial responsibility.

A micro-captive is a small captive operating with annual written premium that qualifies it, in the United States, to be taxed under Internal Revenue Code § 831(b) or 501(c)(15), which provides that a captive qualifying to be taxed as a US insurance company and meeting all requirements of § 831(b) or 501(c)(15) may pay tax only on investment income.

Microinsurance is insurance designed to provide low-cost, limited coverage to low-income individuals, households, or small businesses who may not have access to traditional insurance products. Microinsurance typically covers specific risks such as illness, death, crop loss, livestock loss, property damage, or natural disasters. Often, simplified policy terms, small premiums, and accessible distribution methods are used. The basic purpose of microinsurance is to reduce financial vulnerability by helping insureds recover from losses that could otherwise create significant hardship.

Midi-tail is the informal term for an extended reporting period (ERP) longer than 60 days but not unlimited. The standard Insurance Services Office, Inc. (ISO), claims-made commercial general liability (CGL) policy midi-tail is for 5 years. The CGL policy's midi-tail applies only for known and reported circumstances in most cases.

The Migrant and Seasonal Agricultural Worker Protection Act of 1983 (MSAWPA) is a federal Act that establishes a private right of action for actual or statutory damages (as well as criminal and administrative sanctions) against employers and contractors of migrant or seasonal agricultural workers who violate the MSAWPA's housing and motor vehicle safety requirements, motor vehicle liability insurance requirements, and job information disclosure requirements.

The military service exclusion is an exclusion found in some life and health insurance policies excluding payment of benefits for death or injuries caused to an insured while in military service during a time of war.