What does the term 'Primary Coverage' refer to?

The term 'Primary Coverage' specifically refers to the first insurance that pays when a claim is made. This means that when an insured individual has multiple insurance policies, the primary insurance is the one that will process the claim and provide benefits before any other insurance policies come into play. This designation of primary coverage is crucial in helping to avoid overlaps in benefits and ensures that claims are handled efficiently.

In scenarios involving overlapping policies, understanding which insurance is primary is essential for determining the order in which claims should be submitted and paid. Knowing that primary coverage is the first layer of financial protection allows policyholders to navigate their insurance claims more effectively.