What Is Medical Payments Coverage (MedPay)? Medical payments coverage is an add-on to an auto insurance policy that covers expenses related to vehicular accidents. Also called “MedPay,” it covers you and any passengers in your vehicle, any pedestrians you may injure, and you—if you are riding as a passenger in another vehicle or are injured by a vehicle
What Is a Medical Savings Account (MSA)? The term medical savings account can refer to any of several tax-benefitted arrangements enacted since the early 1990s. However, it also refers to a specific type of medical savings account (MSA) that was authorized and regulated under the Internal Revenue Code in the early 1990s. This type of
What Is Medical Underwriting? Medical underwriting is the process of evaluating an application for health insurance coverage by examining the applicant’s medical history. The price of coverage is determined by the risk factors of the applicant. Depending on the insurance company’s policies and on federal and state regulations, medical underwriting for high-risk candidates may lead to
What Is Medicare? Medicare is a U.S. government health insurance program. The plan covers people age 65 or older, younger ones with disabilities, and patients with end-stage renal disease. Medicare is made up of several plans covering particular aspects of health care, and some come at a cost for the insured. While this allows the
What Is Material News? Material news is news that a company releases that might affect the value of its securities or influence investors’ decisions. It is any type of news that directly relates to the company’s business, and depending on the news, it will move the company’s share price up or down. Key Takeaways Material news
What Are Material Participation Tests? Material participation tests are a set of Internal Revenue Services (IRS) criteria that evaluate whether a taxpayer has materially participated in a trade, business, rental, or other income-producing activity. A taxpayer materially participates if they pass one of the seven material participation tests. However, passive activity rules limit the deductibility
What Is Material Weakness? A material weakness is when one or more of a company’s internal controls—activities, rules, and processes designed to prevent significant financial statement irregularities and improve operation efficiency—is ineffective. If a deficiency in internal control is a material weakness, it could result in a material misstatement in a company’s financial statements. This
What is Mathematical Economics? Mathematical economics is a method of economics that utilizes math principles and tools to create economic theories and to investigate economic quandaries. Mathematics permits economists to construct precisely defined models from which exact conclusions can be derived with mathematical logic, which can then be tested using statistical data and used to
What Is a Maturity Date? The maturity date is the date on which the principal amount of a note, draft, acceptance bond or other debt instrument becomes due. On this date, which is generally printed on the certificate of the instrument in question, the principal investment is repaid to the investor, while the interest payments
What Is a Maturity Gap? A maturity gap is the difference between the total market values of interest rate sensitive assets versus interest rate sensitive liabilities that will mature or be repriced over a given range of future dates. It provides a measure of the interest rate based repricing risk that a bank faces for
