What is the difference between primary and excess insurance?

Primary insurance is a type of insurance that is designed to cover any losses or damages up to a certain limit. It functions as the first line of coverage for an insured party; in the event of an accident, primary insurance will help the insured to pay for medical bills, property damage, and other costs related to the accident. Excess insurance is a type of insurance policy that provides coverage for losses and damages over and above the limits of primary insurance. These policies are usually more expensive than primary insurance policies, as they provide protection for more costly losses and damages. While primary insurance is designed to cover the initial losses, excess insurance is designed to provide additional coverage for higher losses. For instance, if an accident results in damages that exceed the limits of primary insurance, excess insurance can provide additional coverage for these additional costs. In Ohio, the Ohio Department of Insurance enforces the laws and regulations governing both primary and excess insurance. This includes setting minimum limits for all types of insurance, establishing requirements for filing claims, and ensuring that insurance companies treat their customers fairly.

Related FAQs

How does the insurance industry comply with anti-money laundering regulations?
Is the insurance industry subject to taxation?
What are the differences between traditional and online insurance policies?
What are the responsibilities of an insurance producer?
What is the role of the insurance industry in society?
What is the purpose of the Fair Credit Reporting Act in insurance regulation?
How do insurers calculate the appropriate premium for a policy?
How do insurance companies set rates for different types of policies?
How do insurers determine an individual's risk level?
What is the purpose of an insurance code of conduct?

What is the difference between primary and excess insurance?

Related FAQs

Related Blog Posts