What action can an insurer take to discourage malingering and false disability claims?

Limiting the amount of benefits an insured can receive from two disability policies with the same insurer is a strategic action that insurers can take to discourage malingering and false disability claims. By capping the total benefit payout across policies, insurers reduce the incentive for individuals to file multiple claims or exaggerate their disability status to maximize benefits.

This approach ensures that beneficiaries are less likely to exploit the system since even with multiple policies, their financial recovery is restricted. It encourages honesty among applicants and helps maintain the integrity of the insurance program by making it less financially advantageous to commit fraud. Overall, implementing limits on benefits received from multiple policies aligns incentives more fairly between the insurer and the insured, promoting a healthier claims environment.

Other options, while they address issues in the claims process, do not specifically deter individuals from submitting false claims as effectively as this method does.