A&H Policy ProvisionsQuestion 40 of 315
What is the primary purpose of Coordination of Benefits (COB) provisions?
a.To increase the total benefits payable to an insured with multiple plans
b.To void any secondary policy after a primary policy pays
c.To prevent an insured from collecting more than the actual loss when multiple plans cover the same expense
d.To require all insurers to share premiums equally
Explanation
COB rules prevent over-insurance. They order multiple plans into primary and secondary roles so the combined payments do not exceed 100% of the actual covered expense.
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