Provision in an insurance policy under the coordination of benefits clause in which the health plan pays without taking into account any other plans.
Insurance Encyclopedia
Primary coverage (Health Insurance/General Insurance Terms)
Coverage that pays claims submitted without waiting for another policy to pay first.
Primary Coverage for Health
(i) Coverage which pays expenses first without consideration whether or not there is any other coverage. (ii) Insurance coverage which covers from the first penny perhaps after a deductible as distinguished from excess coverage which pays only after some primary coverage has been exhausted.
Primary diagnosis
1. Initial identification of the condition, illness, injury, or chief complaint for which the patient is treated for medical care in a physician’s office or as a hospital outpatient. Insurance claim forms must show the diagnostic code reflecting the primary diagnosis. 2. Underlying cause for the office visit or treatment.
Primary exposure
An aviation insurance term to describe risks which, although serious, are not potentially catastrophic.
Primary Function of Insurance
The primary function of Insurance lies in the elimination of the uncertain risk of loss from the individual through the combination of a large number of similar exposed individual through the combination of a large number of similar exposed individuals who each contribute to a common fund premium payments sufficient to make good the loss caused to any one individual.
Primary Insurance
Insurance providing coverage from the first rupee of loss, perhaps after a deductible, as distinguished from excess coverage, which pays only after the primary Insurance has been exhausted or the insured has absorbed a self-insured retentions. See Also: ‘Self-insured retention.”
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US: Insurance that pays compensation for a loss ahead of any other insurance coverage’s the policyholder may have.
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The first policy or coverage to apply. Contrast with Excess insurance.
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UK: The insurance granted by an insurer to the original insured. If the insurance required exceeds the primary insurer’s retention, the insurance up to the retention is called the primary layer, or the first layer, or is called the underlying insurance.
Primary insurance amount (PIA) (Estate)
A calculation used to determine the amount of social security benefits.
Primary insurer
Insurance company that covers the initial payments for medical services when a person has more than one health insurance plan. The patient must pay the deductible and any copayment fee.
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Insurer that provides primary Insurance. See Also: “Primary Insurance.”
Primary insurer (Reinsurance)
Another term for the ceding company.