Question

A coordination of benefits clause is included in most insurance policies. The purpose of this is to:

A) Limit the coverage provided by the primary insurance
B) Prevent fraud and overbilling by healthcare providers
C) Coordinate payment between multiple insurance plans
D) Exclude certain pre-existing conditions from coverage

Answer 1

A coordination of benefits clause is included in most insurance policies to coordinate payment between multiple insurance plans.

Step-by-step explanation:

A coordination of benefits clause is included in most insurance policies to coordinate payment between multiple insurance plans.

When a person has multiple insurance plans, such as when they are covered by both their own policy and a policy through their spouse's employer, the coordination of benefits clause ensures that the total benefits paid by all policies do not exceed 100% of the covered expenses. It helps determine which policy is the primary payer and which one is the secondary payer.