Glossary

Mobile equipment is a term that is defined in both the commercial general liability (CGL) and commercial auto policies. It refers to equipment such as earth movers, tractors, diggers, farm machinery, forklifts, etc., that, even when self-propelled, are not considered automobiles for insurance purposes (unless they are subject to a compulsory or financial responsibility law or other motor vehicle insurance law). Liability arising from mobile equipment is covered in the general liability policy. Physical damage coverage is usually provided by an "equipment floater."

A mobile home policy is a specialized form designed to meet the unique needs of mobile home or manufactured housing owners. It provides coverage comparable to the homeowners policy, including property, loss of use, and premises and personal liability. In some cases, coverage is granted via a mobile home endorsement to the standard homeowners policy. In other cases, a stand-alone mobile home policy is used to provide coverage.

A model in an insurance context is a standardized, formulaic method of predicting future events using historical information. Catastrophe models, which are usually computerized, can be used to predict losses based upon anticipated future atmospheric weather patterns in various geographic regions.

A model act is proposed legislation drafted by the National Association of Insurance Commissioners (NAIC) to become a standard for adoption by states.

The modification factor (the "mod") is the factor by which a standard workers compensation premium is multiplied to reflect an insured's actual loss experience.

Modified fire resistive construction is one of six building construction categories established by Insurance Services Office, Inc. (ISO), in its Commercial Lines Manual (CLM) for purposes of developing rates for insuring commercial property, based on susceptibility to damage by fire. The CLM description of modified fire resistive construction, followed by the associated ISO construction code, is exterior walls, floors, and roof of masonry or fire-resistive material with a fire resistance rating of at least 1 hour but less than 2 hours (Construction Code 5). The construction code indicates the ranking of this building construction category within the six categories, with 1 as the least fire-resistive and 6 as the most fire-resistive.

Modified life insurance refers to an ordinary life insurance policy with premiums adjusted so that, during the first 3 to 5 years, the premiums are lower than a standard policy, and, in subsequent years, the premiums are higher than a standard policy.

Modified premium refers to a premium calculated by applying the employer's experience modifier to manual premium.

A monetary threshold in no-fault auto insurance is based on a person's degree of injury (as measured by dollars of medical cost incurred) that must be reached before a suit can be brought against the negligent party. Contrast with verbal threshold and tort threshold.

The money and securities broad form policy is an obsolete crime coverage form. Coverage for loss of money and securities from within the insured's premises or from the insured's bank or safe depository is available under an Insurance Services Office, Inc. (ISO), Commercial Crime Coverage Form C, Theft, Disappearance and Destruction Coverage Form (CR 00 04).