Glossary

Monte Carlo simulation is one important technique that has emerged as crucial to effective risk modeling.

The Montrose doctrine is a legal principle, enunciated by the California Supreme Court in Montrose Chem. Corp. v. Admiral Ins. Co., 10 Cal. 4th 645, 42 Cal. Rptr. 2d 324, 913 P.2d 878 (1995).

Montrose provision refers to the provision in a general liability policy that restricts coverage for damage that occurs over multiple policy periods to those policies in which the insured was not aware of the occurrence at the inception of the policy period.

Moonlighting coverage refers to an endorsement available under professional liability policies, nearly always in police professional/law enforcement policies.

Morale hazard is an increase the probable frequency or severity of loss due to an insured peril that arises from an indifferance on the part of the insured to the loss occurring.

Moral hazard is an increase in the probable frequency or severity of loss due to an insured peril that arises from the character or circumstances of the insured.

Morbidity is the relative incidence of disease.

Mortality is the relative incidence of death.

The mortality table is a table showing mortality rates for each age.

A mortgage-backed security is a security, typically a bond, that produces periodic cash flows, using repayments from mortgage loans to fund such payments.