Glossary

Maturity is the span of time, usually expressed in months, since the beginning of an occurrence year. This measures the age of development of a body of losses.

The maturity date is the date at which the face amount of a life insurance policy becomes payable by either death or other contract stipulation.

Maturity value is the amount payable (under a whole life insurance policy) if the insured person lives to the last age on the mortality table on which the values of the contract were based or because of the insured's death. It can also refer to the amount, including principal and interest, that the holder of a bond, note, or mortgage is entitled to receive on the maturity date.

A maximum disability income policy (MDP) refers to a type of long-term disability insurance policy that is noncancelable by the insurance company but limits the insurer's liability for any one claim but not the aggregate amount of all claims. Under an MDP, there is a maximum amount payable for any one claim, but there is no limit on the number of separate claims for different disabilities.

The worst loss that is likely to occur because of a single event is called maximum foreseeable loss (MFL).

Maximum plan limits are the maximum amount of benefits payable under a health insurance policy to a plan participant. Maximum health insurance limits can be categorized as an all causes maximum limit (i.e., $50,000 or $1 million) or a per cause maximum limit (i.e., disability or maternity benefit).

A maximum possible loss (MPL) is the worst loss that could possibly occur because of a single event.

The maximum premium is the highest premium an employer can be charged under a retrospectively rated insurance program, usually stated in multiples of the basic premium.

The McCarran-Ferguson Act of 1945 is federal legislation that exempts insurance from federal regulation as a form of interstate commerce, to the degree effective regulation is undertaken by the individual states.

The MCS-90 endorsement, officially known as the Endorsement for Motor Carrier Policies of Insurance for Public Liability under Sections 29 and 30 of the Motor Carrier Act of 1980, must be attached to the auto liability policy of certain regulated motor carriers to ensure that federally mandated coverage (e.g., required liability limits and environmental restitution coverage) is in place. The endorsement does not actually provide insurance except on a reimbursement basis. For example, a standard unendorsed Insurance Services Office, Inc. (ISO), commercial auto policy contains a pollution exclusion that would preclude coverage for environmental restitution. In the event the Pollution Liability—Broadened Coverage for Covered Autos—Business Auto and Motor Carrier Coverage Forms (CA 99 48) endorsement is attached to a regulated motor carrier's policy, the pollution exclusion is modified but not totally deleted. In either event, if the MCS-90 endorsement is attached, the insurer's obligation with respect to such a situation is determined by the MCS-90 endorsement provisions regardless. If the policy would provide such coverage even without that endorsement, the insurer pays the claim and the endorsement effectively has no impact on the issue. However, if the claim would not have been covered under the policy except for the MCS-90 endorsement provisions, the insurer pays the claim and then has the right to seek reimbursement from the insured.