LLQP (Life Licence Qualification Program) Practice Exam · Question
What is the primary purpose of the 'Coordination of Benefits' provision in group health insurance?
The 'Coordination of Benefits' (COB) prevents a person from profiting from a claim; total reimbursement from all plans cannot exceed 100% of the actual expenses
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Question: What is the primary purpose of the 'Coordination of Benefits' provision in group health insurance?
Answer options:
- To ensure the client receives double the benefits.
- To prevent insurance companies from paying any benefits. ✅ To ensure that total benefits from all plans do not exceed 100% of the actual expenses.
- To allow the agent to collect two commissions.
Correct answer: To ensure that total benefits from all plans do not exceed 100% of the actual expenses.
Explanation: The 'Coordination of Benefits' (COB) prevents a person from profiting from a claim; total reimbursement from all plans cannot exceed 100% of the actual expenses. Strategy: Claim first from own plan, then from spouse's plan.
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- A life insurance policy that offers lifelong coverage, a guaranteed death benefit, and a savings component tha
- Group benefits in Canada commonly include:
- Sarah, a 35-year-old marketing professional in Ontario, purchases a participating whole life insurance policy
- Mark, a 45-year-old business owner in British Columbia, has a Universal Life policy with a Level Cost of Insur
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