What is required of a person with a claim resulting from the same loss as a covered claim?

In the context of surplus lines and insurance claims, individuals with a claim arising from the same loss as a covered claim must first exhaust all other available coverages. This requirement ensures that the insurance system is utilized effectively and that claims are addressed in a sequence that prevents duplicate recoveries for the same loss.

Exhausting other coverages means that the claimant must pursue any other applicable insurance policies or coverage options before seeking compensation from the surplus lines insurance. This policy structure aims to allocate liability appropriately among insurers and encourages the use of primary coverages where possible.

This requirement also helps to maintain the integrity of the surplus lines market by ensuring that it only comes into play when other more primary or traditional coverages have been fully utilized. This step essentially helps to minimize the number of claims that reach the surplus lines insurers, allowing them to focus on higher-risk situations that do not have alternative coverage options.