The purpose of the Coordination of Benefits provision in group accident and health plans is to

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The purpose of the Coordination of Benefits provision in group accident and health plans is to

A) avoid overpayment of claims
B) reduce out-of-pocket costs
C) reduce adverse selection
D) lower the cost of premiums

Answer: A) avoid overpayment of claims

Health and Accident Insurance

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An insured's building has an actual cash value of $200,000, and he has insured the property for $120,000 with an 80% coinsurance clause. A $40,000 loss occurs. How much will the policy pay?

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