To meet the alterations which inevitably arise in connection with many Insurances after a Policy is issued. The companies practice, rather than re-issue the Policy every time a change occurs, is to amend the document by memorandum or endorsement. Both endorsement and memorandum are synonymous terms.
Tag: RAW
Memorandum Advice
An advance notification to an underwriter of a premium or claim.
Memorandum of Association
Document lodged at Companies House setting out the objects and the powers of a company incorporated under the Companies Act. Any acts outside the objects clause are ultra vires and therefore invalid. Directors making contracts’ that are ultra vires may be personally liable. See DIRECTORS’ AND OFFICERS’ LIABILITY.
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The document that sets out the constitution of a company and states its objects. It is complemented by by-laws, referred to as Articles of association.
Memorandum of understanding
Document that provides a general description of the responsibilities that are to be assumed by two or more parties in their pursuit of some goals. It is used when agencies enter into a joint project in which (1) they each contribute their own resources and the scope of work is broad and not specific to any one project or (2) there is no exchange of goods or services between the participating agencies.
Memorandum of Understanding (motor insurance)
Voluntary agreement between motor insurers replacing the knock for knock agreement. Insurers, whose respective insureds have been involved in a collision, agree, when liability attaches to their insured, to pay the other insurer’s accidental damage claim without contesting the amount claimed. This saving in administrative costs is a part of the reduction in paper work exchange.
Memorandum of Understanding (MoU)
Framework for the relati ship between the FSA and the Financial Ombudsman Service (FOS). It reflects the fact that whilst each is operationally independent, they need to cooperate and communicate constructively with each other in order to carry out their respective functions effectively. A similar undertaking links the FSA and the Financial Services Compensation Scheme.
Memorandum, The
Clause referring to particular average used in the discarded SG form. The object was to free underwriters from liability for particular average in respect of certain classes of goods that were particularly susceptible to damage by insured perils. In respect of other goods and the ship and the freight, it applied a franchise (a percentage of damage) which had to be reached before a particular average claim was payable by the insurer.
Mental (or Emotional) Distress
Usually not covered if a claimant was bystander to an accident, but usually covered if he was physically involved.
Mental health parity
Equality of health insurance coverage for the diagnosis and treatment of mental disorders and substance abuse services. National and state organizations have made efforts to obtain progress in this direction. See Mental Health Parity Act (MHPA).
Mental Health Parity Act (MHPA)
Federal legislation enacted on September 26, 1996, that prohibits a lifetime dollar amount on mental health benefits by group health insurance plans and those that issue coverage under such plans.