Question

Three years ago, Charles purchased a health policy from the QRS Company; he has purchased two additional contracts from the same insurer since. Each contract contains the Other Insurance With This Insurer Provision. What happens if Charles has a claim

Answer 1

Answer: a. Only one policy will pay, the premiums for the other contracts will be returned.

Explanation:

When there are multiple insurance contracts from the same insurer and these contracts have a ''Other Insurance With This Insurer'' provision, it means that in cases where the insured wants to claim, they can choose whichever of the policies they want and that one will pay out but they cannot pick them all.

The premiums paid on the other contracts/s will be returned to the insured because it represents excess coverage.