Property, liability, or health coverage that takes precedence when more than one policy covers the same loss. In order to avoid OVER INSURANCE, or paying an insured more than the actual loss, the covering policies accept responsibility for insurance in an established order. For example, if a husband and wife cover each other as dependents in group medical insurance, the injured person's own policy assumes primacy. Therefore if the wife gave birth to a child, her policy would apply to obstetrical and hospital fees up to its limits. Only then would the husband's policy apply, covering the amount that had not been paid by his wife's policy up to the limits of his plan.
Popular Insurance Terms
Type of guaranteed investment contract in which funds for the contract are placed in the insurance company's separate account. ...
Legislation that provided temporary rules for implementing the employee retirement income security act of 1974 (erisa). ...
Effort by an individual to continue to receive disability income benefits by taking a continuing sickness or injury. ...
Stealing small amounts of property. Insurance coverage is available under a number of policies. ...
Return of a percentage of premium paid by a business firm if its loss record is better than the amount loaded into the basic premium. ...
Difference between the yield on earning assets and the cost of interest-bearing liabilities. ...
Latin phrase meaning "without which not," signifying a legal rule in tort and negligence cases. Under this rule, a plaintiff trying to prove that an injury was a direct result of a ...
Requirement that the deductible must be met for each separate illness or accident before benefits are payable under major medical insurance. ...
Conveying of assets from the donor to the beneficiary as a means of minimizing the legal tax obligation of the estate of the donor and avoiding probate. ...
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