Question

To prevent the insured from receiving a duplicate payment for losses under more than one insurance policy is called...

a) Coordination of benefits
b) Double indemnity
c) Subrogation
d) Dual coverage

Answer 1

Dual coverage is prevented through coordination of benefits, which determines the order in which insurance policies will pay to avoid duplicate payments.

Step-by-step explanation:

Dual coverage is the term used to describe the situation where an insured individual has multiple insurance policies that cover the same loss or damage. To prevent the insured from receiving a duplicate payment for losses under more than one insurance policy, the concept of coordination of benefits is used. Coordination of benefits involves determining the order in which the insurance policies will pay, ensuring that the insured is not reimbursed more than the total amount of the loss or damage.