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TeachMeFinance.com - explain master plan insurance master plan insurance -- a form of insurance coverage that insures a financial institution against loss resulting from certain types of damage to a property pledged as security for a loan, whether or not the borrower maintains insurance coverage on the property. Copyright © 2005 by Mark McCracken, All Rights Reserved. TeachMeFinance.com is an informational website, and should not be used as a substitute for professional financial or legal advice. TeachMeFinance.com and its owner recommend consultation with a professional financial advisor prior to any investment or financial decision. Please read our disclaimer.