If an individual claims under two health insurance policies from the same insurer, what might the insurer do?

The insurer might refund the premium amount causing over-coverage when an individual claims under two health insurance policies from the same insurer. This action is typically taken to prevent the insured from receiving an excessive benefit beyond what is necessary for their actual incurred expenses. Insurance principles dictate that coverage should ideally indemnify the insured against loss without allowing them to profit from the situation. Therefore, if one policy provides sufficient coverage for a claim, the other policy may not be necessary, leading the insurer to refund the premium of the policy that is deemed excessive in relation to the claim being processed.

The other choices outline actions that are not standard practices in such scenarios. Returning a percentage of a premium or cancelling all policies does not address the issue of over-coverage directly and could result in confusion or inadequate coverage for the insured. Paying based on the higher premium policy assumes that the more expensive coverage is automatically superior, which is not necessarily true since coverage benefits and limits differ between policies. In contrast, refunding the superfluous premium streamlines the claims process and aligns with fair insurance practices.