AINS 103 Practice Exam 2026 – Comprehensive All-in-One Guide to Mastering Your Insurance Certification!

In layering, the primary policy pays first, up to its limit, and the excess policy kicks in only after that limit is exhausted. This arrangement is designed so the core coverage provided by the primary layer handles losses within its specified amount, and only the portion exceeding that amount is shared with higher layers. For example, if a loss is $1,200,000 and the primary layer has a $1,000,000 limit, the primary pays $1,000,000 and the excess policy covers the remaining $200,000 (up to its own limit and subject to its terms). The excess layer does not contribute until the primary’s limit is used.