A&H Policy ProvisionsQuestion 630 of 716
The coordination of benefits (COB) provision in group health coverage is designed to:
a.Prevent an insured with more than one plan from recovering more than 100% of the actual expenses
b.Double the deductible the insured owes so that the two plans together collect a larger share of the actual costs
c.Cancel the insured's secondary coverage
d.Let an insured collect full benefits from two plans and profit
Explanation
COB establishes which plan pays first and limits total recovery to the actual expense, preventing profit from double coverage. It does not cancel coverage or raise deductibles.
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PrepPass team · 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)