Malicious Mischief
Injury to the rights or property of another with a wicked or perverse intent.

Malpractice
A performance by a professional which is deficient in skill from what might ordinarily be expected of a professional person. The standard of performance to which a professional person will be held is necessarily higher than the standard which an unskilled person would be expected to display.

Manufacturer's and Contractor's Liability Policy
A policy which provides coverage against the liability arising from the ownership of property or the carrying out of operations. This type of policy does not provide any coverage with respect to the hazards of products or completed operations.

Market Value
The value of an asset based on a current market valuation, e.g., the amount for which the item could be sold on the open market.

Masonry Construction
A form of construction identified by self-supporting walls of masonry, e.g., brick, stone or hollow concrete block, but with floors and roofs which may be constructed of combustible materials, usually wood.

Material Fact
Something affecting a contract of insurance important enough to change the agreement between the company and the policyholder. Material facts must be disclosed if asked about. Failure to do so may result in a voiding of the policy involved. An exception to this general rule is that, with respect to ocean marine insurance, all material facts must be disclosed whether the insurer asks the appropriate question or not.

Medical Payments Insurance
A provision in an insurance policy to pay certain specified medical expenses of others irrespective of the insured's legal liability.

Mercantile Risk
Hazard or peril of a merchant in selling his stock of goods.

Merchandise
Those goods which a commercial enterprise ordinarily sells to its customers.

Merit Rating
A system of rating in which the loss experience of a particular risk is a factor in determining the rate for that risk.

Minor
A person under the age of being legally capable of transacting business on his own behalf.

Misrepresentation
An incorrect statement made about a material fact. Misrepresentation can be innocent, e.g., arising from an oversight; fraudulent (in other words, a deliberate untruth with intent to deceive) or the result of extreme carelessness where a statement is made without regard to whether it is true or false. When a misrepresentation is discovered, the insurer may either continue the contract or treat the contract as void with a full return of any premiums paid. In order for the insurer to successfully treat a policy as void, the misrepresented fact must be material to the risk.

Money and Securities (Broad Form) Rider
A broad form of policy protecting against loss of money or securities. There is no coverage for losses caused by, among other things, employee infidelity.

Moral Hazard
Danger of loss arising from the nature of the insured rather than from the physical nature of the risk. This would encompass those instances where the chance of loss is increased by an insured's carelessness, incompetence, recklessness, indifference to loss or an insured's fraudulent nature.

Mortgage Clause
A clause in an insurance policy which stipulates the rights and obligations of the insurer and the mortgagee. The main characteristics of this clause are that the mortgagee is granted protection in the event a loss is denied due to the actions of the insured (provided that the mortgagee was not aware of the insured's wrongful action) and, in return, the mortgagee accepts responsibility to advise the insurer of any misrepresentation or change in risk of which the mortgagee is aware.

Multi peril Policy
A policy which is a combination of fire and casualty (or fire, casualty and inland marine coverages) in a single contract such as the Homeowner's Policy.

Mutual Insurance Company
An insurance company which is owned by its policyholders who formed an association for the purposes of insuring one another against the possibility of fortuitous loss. Each policyholder pays a premium for his or her own policy. If at the end of the fiscal year the mutual insurance company declares a profit, the profit is shared amongst all the policyholders. If the company declares a loss there is also provision for the policyholders to be assessed a levy to make up for this shortfall. See Cash Mutual, Farm Mutual.

Mysterious Disappearance
The disappearance of insured property in an unexplained manner. For example, if a ring is left in a public place and the owner returns later to find the ring gone, it is reasonable to assume that the ring has been stolen. However, there is no direct evidence that this is in fact what happened. This would be an example of mysterious disappearance.

N

Named Insured
The person or party designated in the policy as the insured, as opposed to someone who may be covered by the policy, but is not specifically named.

Named Peril Policy
A policy in which the perils insured against are listed, as opposed to one which insures against "all risks."

Natural Disaster
A disaster caused by the elements such as flood, earthquake, tornado, lightning, etc.

Negligence
Failure to use the degree of care expected from a reasonable and prudent person.

No Fault
The term used to describe a system for improving the compensatory process for automobile accident victims by eliminating costly and lengthy litigation. Simply it means paying certain claims without reference to who was at fault.

Noncombustible
Materials, no part of which will ignite and bum when subjected to fire.

Nondisclosure
A contract of insurance is based on utmost good faith. An applicant for insurance is required to disclose to the company all material facts which are necessary to underwrite a policy. If the applicant does not disclose all these facts, he/ she is guilty of nondisclosure and may risk having coverage voided from inception.

Non-insurable Risk
A risk for which no insurance can be written. The chance of loss is very high or cannot be accurately measured.

Non-owned Automobile Insurance
A policy which protects the insured against third party claims arising out of some other person using their own vehicle in the business of the insured.

Non-valued Policy
A policy is valued when it promises to pay its face value in case of total destruction, irrespective of the value of the insured property. In other words, the value is agreed upon in advance. Used only for certain classes of property such as fine arts or ocean marine. Ordinary policies do not contain agreement and are therefore "non-valued."

Notary Public
A person (usually a lawyer) appointed by the provincial Lieutenant-Governor with the power of drawing and keeping Deeds and of attesting protests of dis honoured negotiable instruments. This person is also a Commissioner of Oaths before whom affidavits are sworn.

Notice of Loss
The conditions of the insurance policy require that any person sustaining a loss insured by the policy shall immediately give notice to the company of such loss. Failure to give notice as required has been held to be a bar against recovery. The notice is required to be in writing, and verbal notice to the agent or broker will not be sufficient to comply with the condition.

Notice of Termination
The conditions of insurance policies stipulate how a policy may be terminated during its term. For example, a policy may be terminated by the insured at any time or by the insurer who must give the insured a certain number of days' notice of termination by registered mail or a certain lesser number of days' written notice of termination personally delivered.

Null and Void
Of no legal or binding force; invalid.