A&H Policy ProvisionsQuestion 40 of 315
What is the primary purpose of Coordination of Benefits (COB) provisions?
a.To require all insurers to share premiums equally
b.To void any secondary policy after a primary policy pays
c.To increase the total benefits payable to an insured with multiple plans
d.To prevent an insured from collecting more than the actual loss when multiple plans cover the same expense
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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Sen Lin, PrepPass Founder · Verified against California Life & Health Insurance License Exam · How we review
Reviewed by John Zihao Zhang — California-Licensed Life Insurance Agent (CA Dept. of Insurance License #4396095 — verify)