A valuation of property made for determining its insurable value or the amount of loss sustained.
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Modified
This term has several meanings, only a few of which will be mentioned here. (1) Under a modified coinsurance provision in Life Reinsurance, the ceding insurer retains and maintains the entire reserve, with the annual increase in reserve being transferred to the ceding insurer by the reinsurer at the end of the year. (2) Under Preliminary Term Insurance, a modified reserving system permits at least part, if not all, of the first year’s net premium on a Life Insurance policy to be used to meet first-year acquisition costs and claim expenses, and requires that part of the renewal loading be added to the policy reserve accumulation. (3) Any premium that is altered from the regular premium for similar Life policies, such as the premium for a Modified Life policy.