Stating that before any benefits are paid in business interruption Insurance Policy/ies a material damage claim under the original property Insurance must have been admitted.
Insurance Encyclopedia
Material fact
UK: A fact that would influence the judgement of a prudent underwriter in deciding whether to accept a risk for insurance and on what terms. The proposer has a duty to disclose material facts at the inception, at renewal and in respect of mid-term alterations where there has been a change in risk. Examples: motor insurance – details of young drivers; industrial activities – heating processes and previous claims.
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UK: a fact which influences a prudent underwriter in deciding whether to accept or decline a risk, and in determining the rate of premium or the imposition of any special conditions.
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Materiality is a question of fact, to be decided in the circumstances which would influence the judgment of a prudent Insurer in fixing the premium or determining whether he will take the risk and, if so, at what premium and on what conditions.
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MEDICAL,USA: Statement of a situation that is of such importance that disclosure would alter an underwriting decision regarding issuance or rating of an insurance policy or loss settlement.
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This refers to any fact which would influence the judgment of a prudent underwriter in deciding whether to accept an insurance/reinsurance risk and the terms on which he would be willing to grant cover. See duty of disclosure.
Material fact (Legal Terminology)
For insurance purposes, this is a fact deemed so important that It would change the decision made by an insurer if it were kept hidden. Misrepresentation of a material fact can void a policy.
Material misrepresentation
Actions of an insured to provide false or misleading statements to the agent or insurer before coverage is placed. The discovery of material misrepresentation allows the carrier to void coverage if the carrier would not have provided coverage had the truth been told.
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The policyholder / applicant makes a false statement of any material (important) fact on his/her application. For instance, the policyholder provides false information regarding the location where the vehicle is garaged.
Material Property
Tangible property as distinct fro legal rights such as patents.
Material representation
A statement made to the underwriter before acceptance of risk that is material to the decision in accepting and rating the risk.
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A statement that is made to an underwriter during the negotiation of cover or the amendment or renewal of cover which would have influenced the judgment of a prudent underwriter in deciding whether to accept an insurance/reinsurance risk and the terms on which he would be willing to grant cover.
Material Safety Data Sheet (MSDS)
Document that informs industrial purchasers and users of hazardous chemicals of the reasonably foreseeable physical and chemical hazards that may arise from the use of those chemicals. Most materials packaged for consumer use are exempt from the requirements of the Hazard Communication Standard (HCS). The MSDS should include precautions for normal use, handling, storage, disposal, and spill cleanup. The HCS requires that accurate information be provided on the MSDSs. This applies as much to “overwarning” on the MSDS and label, as well as the absence of information (“underwarning”).
Material weakness
Serious flaw in management controls that requires high-priority corrective action.
Materiality
A fact, or statement, is material to a contract of insurance if knowledge of that fact would affect the decision of the underwriter to enter into the contract. If the fact would cause a change of any kind in the premium, the conditions of the policy, the perils insured, the persons insured, or in any other way, the policy is subject to being declared void.
Maternal and Child Health Program (MCHP)
A state service organization to assist children younger than 21 years of age who have conditions leading to health problems. It operates with federal grant support under Title V of the Social Security Act. In some states this program may be known as Children’s Special Health Care Services (CSHCS) or State Children’s Health Insurance Program (SCHIP) .