Which of the following does Coordination of Benefits allow?

Coordination of Benefits (COB) is a process used to ensure that when a person is covered by more than one insurance policy, the total payments made by all policies do not exceed the actual costs of the claim. The correct answer reflects this principle because it limits total reimbursement to a maximum of 100% of the covered expenses. This means that if an individual has multiple insurance policies, these policies will coordinate their payments in such a way that the combined payout does not exceed the total amount of the medical expenses incurred.

Choosing this approach helps prevent overinsurance and maintains the integrity of the insurance system by avoiding instances where a claimant could receive more than the actual cost of their healthcare services. This system allows insurers to share the responsibility of payment proportionally based on their coverage, ensuring that the insured individual receives appropriate support without being overcompensated.

The other options do not accurately represent the purpose of Coordination of Benefits. Dual payment for all claims would lead to unregulated payouts that exceed the claim amount, which COB aims to avoid. The idea that only one insurance policy can be active contradicts the very nature of having multiple policies available for coverage. Lastly, while timely reimbursement might be a goal for some insurance processes, it is not a defining feature of