Under the coordination of benefits clause, how is primary coverage determined when a family has two group policies?

The coordination of benefits clause is designed to manage how insurance benefits are paid when a person is covered by more than one insurance policy. The correct choice indicates that each family member is covered by one primary policy, establishing clarity and order in how claims are processed.

When a family has two group policies, the primary coverage is determined typically by establishing which of the policies is responsible for paying first before any other policy contributes to the cost. This way, one policy takes the lead role in covering the expenses of a single member, ensuring that the benefits do not exceed 100% of the claim amount and that there is no duplicate coverage leading to overpayment.

The coordination of benefits clause facilitates the proper handling of claims with multiple policies, allowing for a streamlined and fair approach to coverage among family members. This establishes which policy will pay first while allowing subsequent policies to contribute without duplication.