Florida Life and Health Insurance License Practice Test

The coordination of benefits (COB) provision is designed to prevent overpayment of medical benefits by ensuring that no more than 100% of the cost of a medical claim is paid by multiple insurance policies. Option A, providing additional benefits, is incorrect because the purpose of COB is to avoid duplication of payments, not to provide more benefits. Option C, ensuring policy renewal, is incorrect because COB does not have an impact on policy renewal. Option D, increasing the premium, is also incorrect because COB does not affect the cost of the policy. It is only designed to prevent overpayment.