Assignment of Benefits (AOB)

Assignment of Benefits (AOB) is a legal agreement where a policyholder authorizes their insurance company’s claim payments to be transferred directly to a healthcare provider, contractor, or another party. This streamlines the payment process, ensuring the service provider receives compensation directly from the insurer. AOB is commonly used in insurance claims for healthcare, property repairs, or auto repairs, reducing the reimbursement steps for the provider. However, it also means the provider can pursue payment directly from the insurer and access the policyholder’s coverage details, so it’s important for policyholders to review and understand the terms before signing.