Mortality table

An instrument by which the probabilities of life and probabilities of death can be measured. The basis is the ratio of the number of persons dying at any age to the number of persons alive at the beginning of the year of that age. Mortality and interest rate factors enable actuaries to produce life insurance ‘net premium’ calculations.

Mortgage

A deposit or conditional transfer to secure the performance of some act: The person who makes the transfer is called the “mortgagor,” the other party, the “mortgagee,” sometimes an intermediary called a “trustee” is appointed.

Mortgage impairment insurance

Indemnifies mortgage lenders against loss due to ‘portfolio’ properties sustaining uninsured or under-insured damage. The policy is triggered when damage is due to perils against which the mortgagor was required to insure. The policy also responds if the insured mortgagor is unable to recover under his policy for reasons such as insolvency of the insurer concerned. The insured is also protected against its own negligence in failing to maintain a valid insurance as required by any mortgage deed.

Mortgage indemnity insurance

Financial guarantee insurance covering a mortgage lender for any loss incurred when the mortgagor has defaulted and the property is sold for less than the amount of the loan. A Lloyd’s syndicate wishing to underwrite mortgage indemnity on ships or aircraft must first obtain approval from the War, Civil War and Financial Guarantee Committee.