Purposes of the coinsurance provision in major medical insurance policies include which of the following?
I.to reduce premiums
II.to prevent overutilization of policy benefits

Question

Quizplus · Accepted Answer

Coinsurance provisions help reduce premiums by sharing costs between the insurer and insured, and they discourage overutilization by making the insured responsible for a portion of the costs.

Purposes of the Coinsurance Provision in Major Medical Insurance Policies