What is the purpose of the 'Coordination of Benefits' provision in group health insurance?

Question: What is the purpose of the 'Coordination of Benefits' provision in group health insurance?

Answer options: ✅ To prevent the insured from profiting by claiming more than 100% of the expenses from multiple insurers.

• To ensure that both spouses have identical coverage.
• To allow the insurer to deny a claim if the insured has other coverage.
• To mandate that the government pays first before the private insurer.

Correct answer: To prevent the insured from profiting by claiming more than 100% of the expenses from multiple insurers.

Explanation: The Coordination of Benefits (COB) provision ensures that if a person is covered under two group plans, the total amount claimed does not exceed 100% of the actual expenses incurred. One plan acts as primary, the other as secondary.