Insurance Gobbledygook Made Simple
Plain english explanations of insurance terms used by agents, companies and lawyers and found in your insurance policies.
MManaged health care plansa system that organizes a network of doctors, hospitals, and other providers to provide comprehensive health services to their members at lower costs.Mandated benefitshealth care benefits that state or federal law says must be include din health care plans.Material misrepresentation a significant misstatement in an application form. For example, you did not tell the truth about a situation or medical condition at the time of applying for coverage which would have caused the company to deny you insurance if they had known the truth.Maturity the time at which the insurance contract is paid to the policyholder, if still alive.Medical payments insurance that pays the medical and funeral expenses for you or any passengers riding in your car at the time of an accident. Medical payments will provide coverage whether the accident was caused by you or someone else.Medical Savings Account (MSA)an account held in trust for the account holder. The employer or employee makes annual tax-free contributions to the account that must be maintained in conjunction with a high deductible health insurance policy.Medically necessarya provision in a health care insurance policy that excludes coverage for treatment that is not âmedically necessaryâŁ. This term may be defined differently from one health care plan to another.Mortality chargethe charges a company makes against the policy to cover the policyâs share of the cost of death claims, based upon a mortality table used by the insurance company. Also called the âcost of insuranceâŁ.Mortality tablea statistical table that shows how long people are expected to live under various situations.Multiple employer plansbenefit plans that serve employees of more than one employer and are set up under collective bargaining agreements.Multiple Employer Welfare Arrangements (MEWA)a type of employee association plan that provides benefits to employees of more than one employer.