What does the term "excess insurance" refer to?

The term "excess insurance" refers specifically to a type of insurance policy that comes into play only after all other applicable insurance has been exhausted. This means that it serves as supplementary coverage, providing additional financial protection beyond the limits of primary policies. When someone incurs medical expenses or other types of costs that exceed what their primary insurance covers, excess insurance steps in to cover the remaining expenses.

This distinction is crucial in athletic training and healthcare settings, where it is common to have multiple sources of coverage, such as primary health insurance and additional supplementary policies. Incorporating excess insurance can help manage the financial impact of injuries more effectively, by ensuring that athletes or patients are not left with unmanageable out-of-pocket expenses after their primary insurance limits are met.

The other options describe different types of insurance coverage but do not accurately represent the unique function of excess insurance, which specifically addresses the situation where primary coverage is insufficient.