Solution 1:

From section 5 of the terminfo manual page (terminfo(5)):

rmam    turn of automatic margins

You could think of it as: ReMove Automatic Margins.

Solution 2:

Looking at the terminfo standard, most capabilities starting with sm.. are documented as either "Start Mode ..." or "Enter Mode ..." or "Set ..." so smam means either Start Mode Automatic Margins or Set Mode Automatic Margins

rm.. is indeed a bit more mysterious. In the same place most capabilities starting with rm.. are documented as "Exit Mode ..." so maybe rm... stands for Reset Mode ... or Return from Mode ...?

Also interesting:

tput smam | od -t a
0000000  esc   [   ?   7   h   
tput rmam | od -t a
0000000  esc   [   ?   7   l