This summary is not the rule. The rule text controls.
Sometimes a statement contains another statement inside it, and both are being offered to prove something happened. This is often called "double hearsay." For example, a witness might testify that someone told them what another person said. This rule explains when that kind of layered statement can still be used as evidence in court.
The key point is that each layer of the statement needs its own valid reason for being allowed in. If the outer statement fits an exception to the hearsay rule, but the statement inside it does not, then the whole thing still cannot be used. Every piece of the chain has to qualify on its own under some exception before a court will accept it.
This matters because people often repeat what others told them, and that information can get complicated fast. Courts want to make sure that each piece of secondhand information is reliable enough to trust, not just the overall story. If you're dealing with a case that involves layered statements, like texts describing a phone call, or a report describing what a witness said, this rule is what decides whether that evidence can come in.