Which of the following is the best example of overinsurance?

A) The client's hospital bills total $1,000 a day. His 3 health insurance policies pay $900 a day.

B) The client's income is $4,000 a month. He becomes disabled, and his individual disability policy provides a flat benefit of $1,200; his Social Security benefit is $1,000.

C) The client's hospital bill comes to $1,300 a day. His major medical plan pays $1,000, whereas his hospital indemnity plan pays $400.

D) The client earns $1,500 a month and becomes disabled on the job. He is eligible for $800 a month from workers' compensation and $850 from Social Security.

Answer: C) The client's hospital bill comes to $1,300 a day. His major medical plan pays $1,000, whereas his hospital indemnity plan pays $400.

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