Nathaniel has three different insurance policies.He has been injured in an accident and has incurred $30,000 in medical bills.There is a clause in all of his insurance contracts that makes sure he receives no more than $30,000 in payments from his insurance companies.This clause is called:
a) coordination of benefits
b)deductible
c)coinsuarance
d) major medical expense insurance
IS D CORRECT ANSWER?THANK YOU:)))
I disagree.
Check this site.
http://www.answers.com/topic/coordination-of-benefits
No, D is not the correct answer. The clause in question, which limits Nathaniel's insurance payments to $30,000, is called "coordination of benefits."
Coordination of benefits is a provision that ensures a person with multiple insurance policies does not receive more in benefits than the actual cost of the expenses. It prevents individuals from profiting or "double-dipping" by claiming benefits from multiple insurance policies. In Nathaniel's case, since he has three different insurance policies, the coordination of benefits clause will guarantee that he does not receive more than $30,000 from all combined policies.
To arrive at this answer, you would need to understand the concept of coordination of benefits and be familiar with the terms used in the question. Let me know if there's anything else I can assist you with!