primacy
Definition
Insurance rule that governs which policy comes into effect when more than one policies are covering the same loss. For example, if a married couple names one another as dependent in a group insurance plan then, in case of an accident, the injured spouse's own policy will assume primacy. The other spouse's policy will be triggered only after the injured spouse's policy cover is exhausted. This arrangement prevents the insured(s) from profiting from overinsurance.
News containing the term primacy
Loading...
http://www.businessdictionary.com/definition/primacy.html
