What is the first level of insurance coverage that is applicable once a deductible has been met?

The correct choice reflects the principle that once a deductible has been satisfied in an insurance policy, the first layer of coverage that kicks in is commonly referred to as the primary layer. This is the initial coverage provided by the insurance policy that addresses claims up to a specified limit after the deductible has been met.

Primary coverage is crucial because it represents the first source of payment for policyholders when they incur covered losses. Once the deductible—a predefined amount that the insured must pay out of pocket before the insurance company contributes—has been paid, the primary layer takes effect to cover the remaining costs as permitted by the policy's terms.

Understanding this tier of insurance is essential, as having a clear grasp of how deductibles interact with policy coverages can help individuals or businesses plan for potential financial impacts following a loss event. It defines the starting point of the insurer's liability in the claim process.