Under the Health Insurance Portability and Accountability Act (HIPAA), this is a change adopted by the Secretary, through regulation, to a standard or an implementation specification.
Insurance Encyclopedia
Modified
A general term that can be used in many contexts. Generally speaking, this term refers to a premium that has been changed from the normal premium on similar policies.
Modified adjusted gross income (Pensions)
An employee’s adjusted gross income for a tax year, plus any tax exempt interest they have earned.
Modified average-cost method
Under this system of calculating summary measures, the actuarial balance is defined as the difference between the arithmetic means of the annual cost rates and the annual income rates, with an adjustment included to account for the offsets to cost that are due to (1) the starting trust fund balance and (2) interest earned on the trust fund.
Modified coinsurance
Indemnity life reinsurance that differs from coinsurance only in that the reserves are returned to the cedant while the risk remains with the reinsurer the cedant is required to pay interest to replace that which would have been earned by the reinsurer if it had held the assets corresponding to the reserves in its own investment portfolio. Originally devised to permit reserve credit to be taken with respect to a nonadmitted reinsurer, now also used to secure credit and retain control of investments. See Funds withheld, Coinsurance, and Assumption.
Modified community rating (Health Insurance)
A way of establishing the rates for specific medical expenses using data from a particular area.
modified community rating (MCR)
Rating method in which premiums are based on the average health care costs within a specific geographical region as modified by rating factors such as age and sex that have been filed with the state insurance department.
Modified Competitive Bidding for Risk Management
A process under which the risk manager invites producers and Insurers to suggest Insurance coverage that will best meet the needs of his firm subject to some broad directives and cost considerations.
Modified contribution rate
See: RECOMMENDED CONTRIBUTION RATE.
Modified endowment contract (Life Insurance)
An endowment contract wherein the amount to be paid out after the endowment period is greater than the face value of the policy. The amount payable in the case of death is either the face value or the cash value, whichever is greater. This type of contract is taxable and subject to any penalties after tax.