Glossary

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.

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.

In no-fault auto insurance, a monetary threshold 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.

The money and securities broad form policy is an obsolete crime coverage form.

Money orders and counterfeit paper currency insurance covers loss due to acceptance of a money order that was issued (or is purported to have been issued) by a post office or express company and loss due to acceptance of counterfeit paper currency of the United States or Canada.

Monoline refers to an arrangement with a single line of coverage; common with surety or financial guarantee insurance.

Monopolistic state funds are jurisdictions where an employer must obtain workers compensation insurance from a compulsory state fund or qualify as a self-insurer (as is allowed in two of the jurisdictions).