Primary and Noncontributory
What is Primary and Noncontributory?
Primary and noncontributory, in insurance terminology, is a clause typically found in liability insurance policies. It’s an agreement between two insurance policies where one policy is designated as the primary policy, and the other as the noncontributory policy. The primary policy takes precedence in terms of providing coverage for a claim, and it must pay out first up to its policy limits. The noncontributory policy won’t seek reimbursement from the primary policy for any amount paid. This arrangement ensures that the noncontributory policy provides additional coverage without diluting or reducing the limits of the primary policy.
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