Financial Glossary

M

Major Medical Expense Insurance
A form of health insurance that provides benefits for most types of medical expense up to a high maximum benefit, such as $250,000 or higher after a substantial deductible, such as $500 or more. Such contracts may contain internal limits and are normally subject to coinsurance.
Major Medical Insurance
Health insurance to finance the expense of major illness and injury. Characterized by large benefit maximums ranging up to $250,000 or no limit, the insurance, above an initial deductible, reimburses the major part of all charges for hospital, doctor, private nurses, medical appliances, prescribed out-of-hospital treatment, drugs, and medicines. The insured person as co-insurer pays the remainder.
Malingering
The practice of feigning illness or inability to work in order to collect insurance benefits.
Malpractice Insurance
Coverage for a professional practitioner, such as a doctor or a lawyer, against liability claims resulting from alleged malpractice in the performance of professional services.
Managed Care
Method of organizing and financing health care services that emphasizes cost-effectiveness and coordination of care.
Margin
The amount paid by a client when he or she uses credit to buy a security, the balance being borrowed from a broker against acceptable collateral.
Market Price (or Market Value)
The price at which a security can be bought or sold at any particular time.
Marketable Instrument
Security that may be bought and sold.
Master Policy
A policy that is issued to an employer or trustee, establishing a group insurance plan for designated members of an eligible group.
Maturity
The date on which a bond or other obligation is due to be repaid.
Medical Examination
The examination given by a qualified physician to determine to the insurability of an applicant. A medical examination may also be used to determine whether an insured claiming disability is actually disabled.
Medical Information Bureau
This organization was established in 1902. The Medical Information Bureau (MIB) is a non-profit association of life insurance companies. Its purpose is to detect and deter fraud by providing warnings called, alerts, to member companies.
Medicare
Canada has a predominantly publicly-financed, privately-delivered health care system. It provides access to universal, comprehensive coverage for medically necessary hospital, in-patient and out-patient physician services. Most doctors are private practitioners who work in independent or group practices, enjoy a high degree of autonomy, and are generally paid on a fee-for-service basis.
Misrepresentation
A false, incorrect, improper, or incomplete statement of a material fact, made in the application for a policy.
Mode of Premium Payment
The frequency with which premiums are paid monthly, quarterly, semi-annually, or annually.
Money Laundering
This is the process by which "dirty money" generated by criminal activities is converted through legitimate businesses into assets that cannot be easily traced back to their illegal origins.
Money Market Instrument (MM)
A security with a maturity date of less than one year from the current date (treasury bills, bankers' acceptances, commercial paper, etc.) where transactions usually settle the same day in DCS.
Moral Hazard
Hazard arising from any non-physical, personal characteristic of a risk that increases the possibility of loss or may intensify the severity of loss for instance, bad habits, low integrity, poor financial standing.
Morbidity Tables
These are statistical tables used by life insurance companies showing the probability of disease of male and females at all ages.
Mortality Tables
This is a statistical table used by life insurance companies showing the probability of death of male and females at all ages.
Mortgage-Backed Security (MBS)
An investment instrument that represents ownership of an undivided interest in a group of mortgages. Principal and interest from the individual mortgages are used to pay principal and interest on the MBS.
Mortgage Insurance
Insurance provided that protects a lender against a loss in the event of a foreclosure and deficiency.
Mortgage Insurance Premium
A premium that is added to the mortgage and paid by the borrower over the life of the mortgage. The mortgage insurance insures the lender against loss in case of default by the borrower.
Mortgage Life Insurance
A form of reducing term insurance recommended for the borrower. In the event of the death of the owner or one of the owners, the insurance pays the balance owing on the mortgage. The intent is to protect survivors from losing their home.
Mortgagee
The lender.
Mortgagor
The borrower.
Mutual Fund (MF)
An entity which uses its capital to invest in other companies; is not listed and sells its own new shares to investors and buys back its old shares, redeeming the shares at the net asset value for that day or the "break-up" value of the fund's investment portfolio; capitalization of an open-end fund is not fixed and it normally issues more shares as people want them; the range of mutual funds is extensive and includes funds based on bonds, blue-chip stocks, mortgages (MBS), common shares and international stocks and currencies.
Mutual Fund Dealers Association
The MFDA is the mutual fund industry's self-regulatory organization for the distribution side of the industry. It is responsible for regulating all sales of mutual funds by its Members in Canada.
Mutual Insurance Company
An insurance company in which the ownership and control is vested in the policyholders and a portion of surplus earnings may return to policyholders in the form of dividends.