Certified Travel Associate Practice

What is the definition of Primary coverage in travel insurance?

1. Means they pay first.

2. Requires multiple insurance claims.

3. Covers all expenses after initial payment.

4. Only covers non-health related issues.

The correct answer is: Means they pay first.

The definition of Primary coverage in travel insurance is that it essentially means the insurance policy pays first for any covered expenses when a claim is made. This concept is important as it determines the order in which multiple insurance policies respond to a loss. If you have primary coverage, it is the first to settle claims, making it a crucial feature for travelers who want to ensure their expenses are managed promptly without delays from secondary insurance providers. Other options describe different scenarios rather than the specific definition of primary coverage. For instance, requiring multiple claims does not define primary coverage and may not accurately represent how insurance interactions occur. Similarly, stating that primary coverage covers all expenses after the initial payment is misleading, as primary coverage directly addresses claims rather than implying all expenses are covered. Finally, indicating that it only covers non-health related issues overlooks the fact that primary coverage can also extend to health-related claims based on the insurance policy provisions.