Insurance Glossary

Insurance Term - Coordination of Benefits (COB)

This is a provision in the contract that applies when a person is covered under more than one health insurance plan. It requires that payment of benefits be coordinated by all health insurance plans to eliminate over-insurance or duplication of benefits. In short, it is a system designed to eliminate duplication of benefits, especially when an individual or a policyholder is covered under more than one group plan. Benefits under the two plans usually are limited to no more than 100 percent of the claim.

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