What is an anti-stacking provision designed to prevent?

An anti-stacking provision is designed to prevent the collection of benefits from more than one insurance policy for the same loss. This provision is crucial in ensuring that policyholders do not receive duplicate compensation for the same incident, which could be seen as unjust enrichment. In practical terms, if a person has multiple policies that could potentially cover the same loss, the anti-stacking provision ensures that they can claim under only one policy, or only to the extent of the coverage provided. This maintains fairness in the insurance system and helps control overall costs for insurers by limiting the financial exposure associated with multiple claims for identical losses.

The other options do not accurately describe the purpose of an anti-stacking provision; for example, while it is true that having multiple policies can lead to concerns about redundancy or unlicensed insurers, the core focus of this provision specifically addresses the issue of double recovery from more than one policy for a singular event.