Compensation Glossary

Coordination of Benefits (COB) Clause

This is a clause included in health insurance policies that states that benefits will not be paid for amounts that are already covered by other organizational health insurers. The object of a coordination of benefits clause is to ensure that benefits from all eligible sources do not exceed 100% of permissible medical expenses. This also prevents an individual from profiting from duplicative organization health care coverage. Consider also OVER INSURANCE PROVISION.