Assignment of Benefits
/əˌsaɪnmənt əv ˈbɛnɪfɪts/
Definitions
- (n.) A legal arrangement where a policyholder or insured transfers their right to claim or receive insurance benefits directly to a third party, often a healthcare provider or contractor.
The hospital requested an assignment of benefits to bill the insurance company directly.
- (n.) The transfer of a party’s rights to receive payment or benefits under a contract to another party.
The assignment of benefits allowed the contractor to receive payment directly from the client’s insurer.
Forms
- assignment of benefits
Related terms
See also
Commentary
Often used in insurance and healthcare contexts to facilitate direct payment, this term requires clear contractual language to establish the scope and limits of transferred rights.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.