Arkansas Life and Health Insurance Practice Exam

What is the purpose of the coordination of benefits (COB) provision in group health insurance?

1. To ensure all medical expenses are covered

2. To establish which insurer is the primary payer

3. To deny coverage for pre-existing conditions

4. To reduce the number of claims submitted

The correct answer is: To ensure all medical expenses are covered

The purpose of the coordination of benefits (COB) provision in group health insurance is to establish which insurer is the primary payer when a person is covered by more than one health insurance plan. This provision helps prevent overpayment by ensuring that all medical expenses are covered and that the appropriate insurance company is responsible for covering the costs. COB does not aim to deny coverage for pre-existing conditions or to reduce the number of claims submitted.