What is the difference between primary and excess insurance?

Primary insurance is a type of insurance policy that provides coverage up to a certain amount, and is designed to cover the insured individual or organization’s basic needs. This type of policy is usually the first type of insurance policy purchased, and payouts are available immediately after a claim is filed. Excess insurance is an additional policy that provides supplementary coverage in the event that the primary insurance policy does not offer enough coverage. Excess insurance policies usually involve higher premiums due to the increased coverage offered, and any payouts from an excess policy are not available until the primary insurance policy has paid out the maximum amount. In Alaska, insurance regulation laws are designed to ensure that policyholders are provided with adequate coverage. Insurers are required to provide policyholders with both primary and excess insurance products that meet the minimum coverage requirements established by the state. This helps to ensure that policyholders are not left underinsured and vulnerable to financial losses in the event of an accident or incident.

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What is the difference between primary and excess insurance?

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