New York Life

Glossary

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Market Value Adjustment (MVA)
The Market Value Adjustment (MVA) feature may be a positive or negative adjustment to the amount of a partial withdrawal or full surrender or to the remaining accumulation value in the policy after a partial withdrawal. An MVA only applies when the policy owner surrenders or makes a withdrawal from the contract that is greater than the surrender charge free withdrawal amount during the surrender charge period. An MVA is not applicable after the surrender charge period is over.

Material Fact
In insurance, vital information required for making an underwriting decision. It involves information that is so important that misrepresentation or concealment would alter an underwriting decision. Examples of material facts include a person's age, the existence of a serious health condition (such as the presence of cancer or a past heart attack) or a dangerous vocation, such as hang-gliding.

Material Misrepresentation
This is a false or incomplete statement or concealment of the truth by an insurance applicant or proposed insured on the application that might cause the insurance company to issue coverage where, if the truth were revealed, the application might be declined or rated.

Mature
(See "Endow.")

Maturity Date
In life insurance, the date upon which the policy endows for its full face value.

Max Monthly Benefit for LTC
LTC maximum benefit payable per day for covered daily room and board charges of a nursing home and for care provided in a hospice facility. The policy will pay up to the selected amount and the policy Lifetime Maximum Benefit shown. This benefit is subject to the Elimination/Waiting Period shown.

Medical Examination
Sometimes required as part of the underwriting process, this is the physical examination of an applicant by a qualified medical professional to determine the applicant's insurability. The finding of this exam become part of the application and, in turn, part of the policy when issued.

Medical Information Bureau
Founded in 1902, the MIB is a fraud protection bureau that serves as a medical information clearing house supported by more than 600 member insurance companies, which share information about applicants. All information is coded to assure confidentiality, and access is strictly limited. Information is used to protect against the omission of significant underwriting information by applicants. Reports do not include information regarding whether or not an application is accepted or declined.

Misrepresentation
In insurance, a false, incorrect or incomplete statement of a material fact, made on the application. (See also "Material Misrepresentation.")

Mode (of Payment)
The frequency and method by which premiums are paid. Standard premium modes are annually, semi-annually, quarterly, monthly and automatic payment (deduction from checking or savings account).

Modified Endowment Contract
If the amount of money you pay into your policy exceeds certain thresholds determined by the Internal Revenue Service, your policy will be considered a Modified Endowment Contract (MEC) for tax purposes. Withdrawal of funds from a MEC, in the form of loans (including loans used to pay the policy premium), partial surrenders, assignments, pledges, or withdrawals may be subject to income tax and possibly penalties.

Modified Premium Policy
A life insurance policy issued with a built in premium change (either an increase or decrease) in a future year.

Monthly Deductions
With a variable or universal life insurance policy, these are the charges deducted from the cash value to meet mortality and expense costs, as well as premiums for riders and supplementary benefits.

Monthly Deduction Waiver
The Monthly Deduction Waiver provides protection against total disability (as defined in the rider) of the primary insured by waiving the monthly deduction charges deducted from the policy cash value on each monthly deduction day.

Morbidity
A general term referring to frequency of sickness. As an underwriting concept, it refers to the potential loss of health for a specific population, generally by age.

Morbidity Rate
The ratio of the incidence of sickness to the number of well persons in a given group of persons over a given period of time.

Mortality
The relative incidence of death in proportion to a specific population.

Mortality Charge
The cost of insurance protection in a life insurance policy for a given period of time. In a variable universal life insurance policy, for instance, the mortality charge is deducted from the cash value each month.

Mortality Experience
The rate at which persons insured by a specific company (or under a given policy) have died or are assumed to die.

Mutual Insurance Company
An insurance company which has no capital stock or stockholders, but is instead owned by its policyowners. One key feature of mutual companies is that earnings above those necessary for the operation of the company may be returned to the policyowners in the form of policy dividends.

Mutual Fund
An investment consisting of pooled money from investors which is then invested in a variety of securities (generally stocks, bonds and money market securities) to reflect its particular investment objectives.

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

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