Definition of "Layering"
Combination of several policies with each adding an additional layer or limit of coverage above the limits of the policy that comes before it. For example, Policy A adds $100,000, then Policy B adds $200,000 and then Policy C adds $300,000, for a total of $600,000. In some instances a business firm cannot obtain the total coverage it requires from a single insurance company. Thus, the business may have to buy several policies from different companies in order to acquire the total needed.
Popular Insurance Terms
Sum that an insurance company charges a business firm to restore a property or liability insurance policy, or a bond, to its initial face value after the insurance company has paid a claim ...
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Additions of new entrants into an employee benefit insurance plan. ...
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Option under a participating life insurance policy by which the policy owner can elect to have the dividends purchase paid-up increments of permanent insurance. ...
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Method by which each member of an insurance pool shares in each and every risk written by the other members of the pool. ...
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