Glossary

A manuscript form or policy is an insurance policy form that is custom designed for a particular insured. This is in contrast to the use of standard insurance policy forms drafted for insurers' use by insurance industry services organizations such as American Association of Insurance Services, Insurance Services Office, Inc., and National Council on Compensation Insurance.

A margin clause is a nonstandard commercial property insurance provision stating that the most the insured can collect for a loss at a given location is a specified percentage of the values reported for that location on the insured's statement of values. The maximum is normally stated as a percentage that is greater than 100 percent, such as 110 or 125 percent. A margin clause may be used alone or along with another nonstandard commercial property insurance provision: a per occurrence limitation of liability provision. A per location limitation of liability provision is even more restrictive than a margin clause. It establishes that the most the insured can collect for a commercial property loss at a given location is the amount reported for that location on the insured's statement of values. When the two provisions are used together, the margin clause increases the amount that the insured could otherwise collect. Both provisions are typically attached to policies with blanket limits, so that they essentially convert blanket limits to specific, per location limits.

Marina operators legal liability coverage insures the liability exposures associated with the operation of a marina including those related to the care, custody, and control (CCC) of watercraft. The coverage may include both land and waterborne exposures located at the marina. A marina operator is responsible for affording vessels that make use of its facilities with a safe berth. To that end, the marina operator must advise a vessel operator of any hazards or deficiencies associated with the marina or the berth in which the vessel is to moor. When the marina operator fails to do this, the operator becomes liable to the vessel operator for damage that results from the unsafe berth. Policies normally provide coverage for private pleasure vessels but may be endorsed to cover commercial vessels should one dock at the marina.

Marine insurance is a line of insurance applicable to the conveyance of cargo over land or water. It can cover loss of or damage to ships, cargo, terminals, pipelines, ports, oil rigs and platforms, and similar property. The two branches of marine insurance are ocean marine (primarily water-based exposures) and inland marine (primarily land-based exposures). In addition to first-party coverage for damage to property, ocean marine insurance also typically covers liability arising from the insured vessel under a coverage called "protection and indemnity."

A marine survey is a watercraft inspection and appraisal, which insurers typically require for boats over 10 years old or extremely valuable watercraft (e.g., over $35,000). The survey generates detailed information about the vessel, including identification, description, and condition of the (1) hull, (2) fittings and equipment, (3) electronic and safety equipment, (4) galley (if applicable), (5) engines, (6) electrical system, and (7) firefighting equipment. The vessel is normally hauled from the water during the survey for bottom inspection, although the insurer may allow an in-water survey. In some cases, the survey includes a sea trial. Often the same survey used for purchase considerations is used to obtain insurance. In addition, the survey typically indicates the craft's replacement cost and insurable/market value.

A marketplace platform is an interface that brings together buyers and sellers of a certain good or service. With the rise of the gig economy, a number of marketplace platforms offer peer-to-peer, e-commerce services that can be offered and purchased (usually via mobile devices). Airbnb is an example of a property-based marketplace platform (i.e., users can either list their property for rent or browse the marketplace of properties available for their own rental needs), while Etsy is an example of a product-based marketplace platform (i.e., users can either list their own craft items for sale or browse the goods of others to purchase).

Market conduct is the way an insurer operates in relation to its customers and suppliers. Regulated strictly, to ensure no rebating, for example.

A market conduct exam is an investigation by insurance regulators to determine whether an insurer has followed laws relating to the distribution of products to consumers and settlement of claims.

Market cycles are marketwide fluctuations in the prevailing level of insurance and reinsurance premiums. A soft market (i.e., a period of increased competition, depressed premiums, and excess capacity) is followed by a hard market—a period of rising premiums and decreased capacity. Traditionally, each period has a causative effect on the other. For example, in a hard market, insurers' earnings are greater than during a soft market. Large earnings have the effect of increasing capacity. More capacity means more supply. When supply equals or exceeds demand, premiums go down, competition heats up, and earnings begin to shrink. Once earnings shrink to the point where the amount of capacity is reduced, the market hardens up, and the cycle starts all over again.

Market risk is the exposure to uncertainty due to changes in rate or market price of an invested asset (e.g., interest rates, equity values).