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

Question

Quizplus · Accepted Answer

The purpose of the coinsurance provision in medical expense insurance policies is to reduce premiums as it shares the cost of medical expenses between the insured and the insurer, and to prevent overutilization of policy benefits by requiring the insured to pay a portion of the medical expenses. Therefore, both I and II are correct.

Purposes of the Coinsurance Provision in Medical Expense Insurance Policies