What is the difference between primary and excess insurance?

Primary insurance is insurance that provides full coverage for any damage caused by an incident. The primary insurer covers any costs up to the policy limits and is the first line of defense against a claim. Excess insurance, on the other hand, is insurance that provides an additional layer of coverage if the primary policy limits have been exceeded. It kicks in after the primary insurance has been used up and is there to provide additional coverage for any further legal costs or damages that may arise. In North Carolina, the regulation of insurance companies and policies is handled by the North Carolina Department of Insurance. This department sets the rules and regulations for all insurance providers, ensuring that policies are fairly priced and comply with state laws. The North Carolina Department of Insurance also sets rules and regulations around the types of primary and excess insurance that are offered in the state. They require that each insurer offers a basic level of primary insurance coverage and require that consumers also consider excess insurance during their purchase of a policy. The differences between primary and excess insurance are strictly regulated by the North Carolina Department of Insurance, ensuring that consumers are provided with the best coverage for their needs.

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What is the difference between primary and excess insurance?

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