Underlying Primary Levels of Coverage

MMC Benefits Handbook

What is the required primary insurance?

The coverage you elect through the Plan is intended to provide additional limits of coverage over your home, automobile and watercraft primary liability coverage. You must maintain primary insurance in order to be fully covered. This is known as the Required Primary Underlying Insurance. Failure by you or your family members to comply with this condition, or failure of any of your primary underlying insurers due to insolvency or bankruptcy, shall not invalidate this policy. In the event of any such failure, we shall only be liable in excess of the Required Primary Underlying Insurance and to no greater extent with respect to coverages, amounts and defense costs than we would have been had this failure not occurred.

The Plan will cover damages a covered person is legally obligated to pay for personal injury or property damage, caused by an occurrence:

In excess of damages covered by the required primary underlying insurance; or

from the first dollar of damage where no primary underlying insurance is required under this policy and no underlying insurance exists; or

from the first dollar of damage where primary underlying insurance is required under this policy but no coverage is provided by the underlying insurance for a particular occurrence.

What are the required primary minimum underlying limits for insurance?

Following is the Schedule of Required Underlying Limits which describes the types of insurance that require primary minimum underlying limits:


Minimum Required Underlying Limits of Coverage Exposures	Coverage	Primary Minimum Required Underlying Limit
Automobile Liability Recreational Liability Motorcycle Liability (Registered Vehicles)	Bodily Injury Bodily Injury Property Damage OR Bodily Injury Bodily Injury Property Damage Or Combined Single Limit	$250,000 Per Person $500,000 Per Occurrence $50,000 OR $300,000 Per Person $300,000 Per Occurrence $50,000 $300,000
Personal Liability	Combined Single Limit (Required on all property owned or rented to others)	$300,000 Per Occurrence
Watercraft Liability	Combined Single Limit (Boats less than 26 feet in length and/or under 50 HP)	$300,000 Per Occurrence
Watercraft Liability*	Combined Single Limit (Boats 26 feet in length or longer and/or 50 HP or more*)	$500,000 Per Occurrence
Snowmobile Liability (Unregistered Vehicle – not registered with motor vehicle for road use)	Combined Single Limit	$300,000 Per Occurrence
Uninsured Motorist/Under Insured Motorist Protection	Bodily Injury Bodily Injury OR Bodily Injury Bodily Injury Property Damage Or Combined Single Limit	$250,000 Per Person $500,000 Per Occurrence OR $300,000 Per Person $300,000 Per Occurrence $50,000 $300,000

Failure to maintain the required minimum underlying limits of liability may result in a gap in coverage for which you will be financially liable.

* Boats 50 horsepower or more will require $500,000 Combined Single Limit.

What happens if I fail to maintain the required underlying limit?

If you fail to maintain the Required Underlying Limit for primary insurance, and there is an occurrence that would have been covered by such insurance:

you will be responsible for the amount of damages up to the applicable minimum Required Underlying Limit of your required primary insurance (except as noted below)

the Plan will only pay amounts in excess of your required underlying limits and any other collectible insurance (except as noted below).

Note: You must maintain primary liability coverage for watercraft or no coverage will apply under this policy.

The above Schedule of Required Underlying Limits is intended as a summary of the underlying limits; your Certificate of Insurance provides your specific requirements.