What is the main goal of insurers in implementing a COB provision?

The main goal of insurers in implementing a Coordination of Benefits (COB) provision is to eliminate excessive claims payments. The COB provision is designed to ensure that when a policyholder has multiple insurance policies providing similar coverage, the total benefits paid by all insurers do not exceed the actual expenses incurred. This means that insurers will coordinate among themselves to determine which policy is primary and which is secondary, allowing for an equitable distribution of benefits without resulting in overpayment.

By having this provision in place, insurers can prevent situations where policyholders benefit financially from having multiple policies beyond the actual need for coverage. This ultimately helps to keep insurance costs in check, which serves the overall goal of maintaining affordability for policyholders and insurers alike.