Which type of coverage is likely to act after primary coverage has been utilized?

Excess coverage is designed to provide additional protection once the limits of the primary coverage have been exhausted. This means that once the primary policy pays out up to its specified limits for a covered loss, any remaining eligible losses can then be covered by the excess policy. This type of coverage often kicks in after the primary coverage has fulfilled its obligation, making it crucial for policyholders who want to ensure that they have adequate insurance limits for certain risks.

Supplemental coverage refers to additional benefits that can be added to a primary policy but may not necessarily act after the primary coverage has been used. Primary coverage is the main insurance policy that responds to claims without the need for exhaustion of another policy. Basic coverage typically refers to a standard level of insurance that provides the minimum protection required. Thus, excess coverage clearly distinguishes itself by specifically functioning after primary coverage limits have been met, providing an added layer of financial protection.