Ensuring that damaged property, once repaired, matches the property that was not damaged in the loss.
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Paying regard, in the selection of assets, to the dates on which liabilities will or may accrue, or the currencies in which they are payable, with the object of ensuring that the realizable value of the assets at any such dates will suffice to discharge the liabilities.
Insurance Encyclopedia
Matching contributions
Contributions made by an employer on behalf of an employee’s pension plan that are equal to the employee’s contributions up to a specific amount or percentage of compensation.
Matching risk
The risk that liabilities and assets are not properly matched. The risk arises from mismatches related to currency and timing, interest rate risk and inflation risk. It is of major importance to life insurers as mismatching could lead to the sale of investments to meet claims as they fall due at a time of low values. In regard to annuities it is necessary to match annuity liabilities with investments of a similar pattern, e.g. fixed income securities. The FSA prescribes asset and liability valuation rules aimed at minimising this risk.
Mate’s Receipt
Receipt of cargo by the vessel, signed by the mate (similar to dock receipt).
Material Circumstance
Any circumstances that would influence a prudent underwriter in his decision to accept or reject a risk, or in the amount he would accept or the premium he would charge for cover.
Material circumstances
Any circumstances that would influence the judgment of a prudent underwriter in determining whether to accept a risk and the amount of premium to change.
Material Damage
Insurance against damage to a vehicle itself. It includes automobile comprehensive, collision, fire and theft. Material damage and physical damage are terms that often are used inter- changeably.
Material damage insurance
The insurance of tangible property as distinct from the insurance of persons (life and limb), rights, pecuniary interests, and liability. Fire, theft, motor, cargo and hull policies are all policies that are entirely or partly of a material damage nature where the subject matter of insurance takes the form of tangible property. The property can usually be insured against named perils or on an ‘all risks’ or accidental damage basis.
Material Damage Policy
The policy covering damage to property (usually a commercial fire policy) as the result of which damage a business interruption claim may result. It is a condition of business interruption insurance that a material damage policy must be and remain in force.
Material damage proviso
Business interruption insurance proviso requiring that, before a claim can be allowed, a material damage claim must be admitted; the absence of such insurance would prolong the interruption. When the interruption results from damage at external premises, e.g. the supplier’s, the only requirement is that the damage should have been caused by an insured peril. See CUSTOMERS’ EXTENSION; SUPPLIERS’ EXTENSION; LOSS OF ATTRACTION; DENIAL OF ACCESS; EXTERNAL DEPENDENCIES.