The Purpose of a Coordination-Of-Benefits Provision in Group Health Insurance

question 41

Multiple Choice

The purpose of a coordination-of-benefits provision in group health insurance plans is to

• A)determine which plan pays first if more than one plan covers a loss.
• B)determine which health care provider an insured may use for his or her care.
• C)determine if the calendar-year deductible has been satisfied by the insured.
• D)determine if the employee is eligible for coverage under the group health plan.

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Definitions:

Market Interest Rate

The prevailing rate of interest that is available in the market for savings, loans, and investments.

Noncallable Bonds

Bonds that cannot be redeemed by the issuer before their specified maturity date, offering protection to bond investors.

Par Value

The face value of a bond or stock, as stated by the issuing company, which may differ from the market value.

Annual Coupon

The yearly interest amount paid to bondholders, typically expressed as a percentage of the bond's face value.