Because medical expenses may be covered by more than one policy, health insurance policies normally contain a ________ clause to prevent unnecessary termination of the insured.

Question

Quizplus · Accepted Answer

A coordination of benefits clause outlines how multiple insurance policies will work together to cover medical expenses. This helps prevent duplicate payments and ensures that the insured receives appropriate coverage without unnecessary termination or gaps in coverage. Reinstatement refers to the process of restoring coverage after it has been terminated, and pro-rata refers to the proportional allocation of costs between the insured and insurer. Cost containment refers to efforts to control and reduce healthcare costs.

Because Medical Expenses May Be Covered by More Than One