EXCESS PLAN Meaning and
Definition
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Excess plan, also known as a supplementary plan or secondary plan, is a type of insurance coverage that is designed to provide additional benefits and coverage above and beyond what is provided by a primary insurance policy. It is typically obtained by individuals or businesses to extend their insurance coverage limits when the limits of their primary policy have been exhausted.
In the context of health insurance, an excess plan can be used to supplement a basic health insurance policy. For instance, if a person has a primary health insurance policy with a certain coverage limit, an excess plan can be purchased to provide additional coverage above that limit. In case of a major medical expense, the excess plan will kick in once the primary policy's limit has been reached, covering additional expenses up to a predetermined limit.
Similarly, in property and casualty insurance, an excess plan can provide coverage above the limits of a primary policy in cases of catastrophic events, such as natural disasters or liability claims.
Excess plans can be purchased for various types of insurance, including health, property, auto, and liability insurance. They act as a safety net to protect individuals or businesses from large financial losses that may exceed the limits of their primary insurance policy.
Common Misspellings for EXCESS PLAN
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Etymology of EXCESS PLAN
The term "excess plan" does not have a specific etymology, as it is a combination of two English words. "Excess" originated from the Latin word "excessus", meaning "a departure, a going beyond, a passing beyond limits". It refers to the act of exceeding or surpassing a certain limit or boundary. "Plan", on the other hand, derives from the Latin word "plānus", meaning "flat" or "level". It evolved to denote a detailed proposal or a predetermined course of action. When combined, "excess plan" generally refers to a plan or strategy that involves going beyond what is considered normal or expected limits.
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