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Negligence or incompetence on the part of a professional. A professional practitioner is liable for damage or injuries caused by malpractice. For some professions, a special liability policy can be purchased to provide coverage for claims of malpractice.
Market value clause
A provision in the insurance contract that obliges the insurance company to recognize the fair market value of the destroyed or damaged property as its actual cash value at the date of loss. The claim would be adjusted accordingly.
A policy issued to an insured to cover property at more than one location. If the property is located in multiple states, it is often customary to issue separate policies in the individual states to conform to each state's legal requirements.
A willful misrepresentation that would effect the insurance company
Situation in which parties agree to take part in a structured settlement negotiation through the guidance of a neutral expert. By participating in this process, the parties do not agree that they will actually settle and the mediator does not have the authority to impose such a settlement.
Medical expense insurance
Insurance that covers expenses for medical treatment and care as a result of bodily injury or illness.
Minimum earned premium (MEP)
The amount of your premium that is non-refundable should you cancel your policy before its expiration date. It is not an additional charge that is added to your quoted premium; your quoted premium remains the same. Depending upon the state where you live, it could be a flat dollar amount or could be a percentage of your policy's premium. For example, if your annual premium is $1,200 with a MEP of $250 and, after 1 month, you decide to cancel your policy, your policy premium will be $250 for the 1 month of coverage provided (as opposed to $100 if it were calculated strictly on a pro-rated basis).
The smallest amount of premium for which an insurer will issue coverage under a given policy.
A mudslide is a slippage of mud because of poor drainage of rainfall through soil.
Multi peril insurance
A clause in an insurance policy that makes a claim jointly payable to the policyholder and the party that holds a mortgage on the property.