Which of the following best describes “excess insurance”?

Excess insurance is designed to provide an additional layer of coverage beyond what is offered by a primary insurance policy. When a loss occurs that exceeds the limits of the primary policy, excess insurance steps in to cover the remaining costs. This means that it only provides benefits after the primary insurance has been exhausted, making it an essential tool for protecting against large losses that could otherwise exceed the coverage limits of standard policies.

In this context, the other descriptions do not align with the definition of excess insurance. Partial loss coverage implies limited financial protection, which does not fit the purpose of excess policies. Replicating basic coverage doesn't capture the essence of excess insurance either, as it is not about duplicating basic coverage but providing additional coverage over and above it. Lastly, while high-risk items can be associated with higher coverage needs, excess insurance itself is not specifically designed for high-risk items but rather serves as supplementary coverage. Thus, the definition that emphasizes its role in covering amounts beyond what primary coverage offers is accurate and encapsulates the function of excess insurance effectively.