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The concept of a "primary policy" can best be understood when there exist two or more insurance policies that arguably provide coverage for the same occurrence. The "primary insurance" is the policy that is first responsible for the payment of claims.
A good example might be when a state requires that the owner of a motor vehicle to maintain what of often called "personal injury protection coverage" (a/k/a "no fault coverage"). That type of insurance pays a percentage of the injured insured's medical expenses and/or lost wages regardless of fault for the collision. If the injured insured also has major medical or hospitalization insurance, a primary/secondary insurance scenario develops. State statutory law or interpretative case law will dictate which is primary and which is secondary, but typically, the coverage specific to the occurrence (e.g. the auto-related insurance) will be primary until benefits are exhausted.
Primary/secondary insurance situations may also develop when insurance is required to be maintained by the terms of a contract between two or more parties. Often, the contract specifies which (or whose) insurance will be primary.
What else can I help you with?
Can I have two primary beneficiaries for my insurance policy?
Yes, you can have two primary beneficiaries for your insurance policy.
Which insurance policy takes precedence if I have two insurances, one of which is primary?
If you have two insurance policies and one is designated as the primary policy, the primary insurance policy takes precedence over the secondary insurance policy in terms of coverage and payment.
Which insurance policy is considered primary if I have two policies?
If you have two insurance policies, the policy that is considered primary is typically the one that pays benefits first before the secondary policy.
Is an insurance policy a primary security?
Yes
Which insurance policy is never primary when the insured has more than one policy?
Medicare
What is the meaning of the term excess in a general liability insurance policy?
An excess insurance policy is one, the coverage of which, sits "atop" the primary policy. That is, the excess policy provides additional indemnity benefits if or when the primary policy limits are exhausted. In general, the primary insurer has a duty to settle a claim within its policy limits if it is possible to do so so as not to subject the excess policy to exposure. Normally, the excess insurer will track the underlying litigation to ensure that this is done. It may have a cause of action against the primary insurer if the primary insurer does not do this and the excess insurer is called upon to pay the claimant.
My broker failed to canel my policy new primary in effect same Co Will not refund me Can I have two primary at the same time?
Depends on the rules and the policy provisions. Do you have proof you asked the broker to cancel the policy?
What is the primary focus of monetary policy?
Price stability
Who is the primary initiator of public policy in the state?
president
What are types of beneficiaries of an insurance policy?
Primary and Secondary
Which of types of beneficiaries in an insurance policy?
primary and secondary
Person is 26 years old and on her parent's medical insurance but has also taken out her own individual medical policy Which is primary insurance?
The individual policy is always primary.
