Florida Insurance Glossary Terms "M,N,O"
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Managing General Agent:  A company’s representative (wholesale agent) that deals with other agents (retail
agent). Florida Auto Plus is a family owned insurance agency acting as an independent retail agent representing a
variety of companies.

Mediation:  Process by which a third party attempts to settle a dispute.

Medical Payments Insurance:  A reimbursement for medical or funeral expenses due to bodily injury from an
accident without regard to fault.

Misrepresentation:  A false or misleading statement on an application which may provide a reason for the
company to void the policy.

Moral Hazard:  The tendency for an insured to be dishonest regarding a claim because of a specific reason or

Motor Vehicle Record (MVR):  The official state record of an individual driver’s license which includes issued
citations. Information provided about your driving record helps determine the rate quote a particular driver will
receive. Any
Florida auto insurance quotes questions you have may be answered here on this site or by calling us

Multi-Car Discount:  A reduction in the base premium due to two or more vehicles being insured.

Mutual Insurance Company:  A company which is owned by its policyholders as opposed to a stock company
which is owned by shareholders.
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Florida Auto Plus Insurance Agency  
Named Insured:  The person or entity specifically named as insured in the contract i.e. policyholder.

Named Non-Owner Policy:  An auto policy for someone who does not own a motor vehicle but drives someone
else’s car or is mandated to secure a policy to maintain a driver’s license, as this type of policy can qualify for
Florida SR22/FR44 Form and Filing.

Named Perils:  A specific set of hazards or circumstances listed in the contract which triggers coverage.

National Association of Insurance Commissioners (NAIC):  “The NAIC is the organization of state insurance
regulators for all 50 of the United States, Washington DC, and five US territories.” www.naic.org

Negligence:  An action or failure to act as a reasonably prudent person would.

Net Loss:  The amount of a claim payout less any amount received through salvage, subrogation or reinsurance.

Net Premium:  The dollar amount collected for an insurance policy; less expense, such as commission or

No-Fault Auto Insurance:  Pays for medical and funeral expenses due to bodily injury after an accident
regardless of fault.

Non-admitted Insurers:  Companies that are licensed in states other than where they do business. As Auto Plus
insurance authorized agent for Progressive and other companies, we only sell policies from companies that are
duly licensed in Florida.

Non-Renewal:  A refusal by a company to continue a policy after it expires.

Non-Renewal Notices:  A company is required to provide 45 day advanced notice to the policyholder of an intent
to non-renew.

Non-Owned Auto:  An option used to insure vehicles on a business auto policy which are not owned by the
business e.g. employee vehicles used in the course of employment.

Non-Resident Agent:  An agent licensed in a state other than where they reside. Our agency qualifies as a
Florida resident insurance agency.

Notice of Loss:  Document notifying the carrier that a loss has occurred.
Occurrence: An event that triggers payment.

Original Equipment: Equipment installed by the original manufacturer of a motor vehicle.

Open Perils: Applies in the event of any peril or hazard as opposed to named perils that are specifically listed.

Operating Ratio: The sum of a company's claims payout, expenses, premium received, and investment income.

Other Than Collision Insurance: Coverage for automobiles damaged by means other than striking another
object e.g. fire, theft, vandalism, etc…
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