Which type of insurance coverage must a group self-insurer maintain beyond primary to meet the requirement?

Which type of insurance coverage must a group self-insurer maintain beyond primary to meet the requirement?

• A. Primary
• B. Umbrella
• C. Reinsurance
• D. Excess

Answer: (D)

Protection above the self-funded primary layer is the key idea. A group self-insurer sets aside funds to pay claims up to a primary limit, but to meet the required financial protection, there must be coverage that sits on top of that primary layer. This is provided by excess coverage, which kicks in only after the primary limit is reached and pays claims up to its own higher limit. It helps shield the group from very large losses and satisfies the obligation to have an additional layer of protection beyond the self-insured portion. Reinsurance is a transfer to another insurer and is not the specific layer required to meet this rule; an umbrella policy, while similar in concept, is a broader form of excess coverage and may not satisfy the exact requirement in this context.

Protection above the self-funded primary layer is the key idea. A group self-insurer sets aside funds to pay claims up to a primary limit, but to meet the required financial protection, there must be coverage that sits on top of that primary layer. This is provided by excess coverage, which kicks in only after the primary limit is reached and pays claims up to its own higher limit. It helps shield the group from very large losses and satisfies the obligation to have an additional layer of protection beyond the self-insured portion. Reinsurance is a transfer to another insurer and is not the specific layer required to meet this rule; an umbrella policy, while similar in concept, is a broader form of excess coverage and may not satisfy the exact requirement in this context.