Drop down provision

Term · Insurance and risk management · MLC-T-INS-001226

A clause in an excess or umbrella liability policy that requires it to provide primary coverage when an underlying policy fails to respond to a loss. This activation occurs if the underlying insurer becomes insolvent or if the underlying policy's aggregate limit is exhausted by prior claims. The excess policy then pays the loss from the first dollar, subject to its own self-insured retention or deductible.

Table 1. Record
Identifier	MLC-T-INS-001226
Field	Insurance and risk management
Subject	Excess Umbrella

Record as JSON

{
  "id": "MLC-T-INS-001226",
  "term": "Drop down provision",
  "field": "Insurance and risk management",
  "definition": "A clause in an excess or umbrella liability policy that requires it to provide primary coverage when an underlying policy fails to respond to a loss. This activation occurs if the underlying insurer becomes insolvent or if the underlying policy's aggregate limit is exhausted by prior claims. The excess policy then pays the loss from the first dollar, subject to its own self-insured retention or deductible.",
  "subject": "Excess Umbrella",
  "url": "https://mlchart.com/terminology/insurance/drop-down-provision/"
}

Record 1,070 of 3,748 in Insurance and risk management terminology (MLC-0106). Request the full dataset.