Which concept refers to coverage for dependents covered under two policies?

The concept that refers to coverage for dependents covered under two policies is Coordination of Benefits (COB). This practice is essential in situations where an individual may be covered by more than one health insurance policy. COB determines the order of payment between the various insurers, which helps to avoid duplicate payments for the same medical expenses.

When dependents are covered by two different policies, COB protocols guide how benefits are applied so that the total reimbursement does not exceed 100% of the coverage amount for covered services. This ensures that the policyholders or dependents receive the maximum benefits available without any overlap that could lead to excessive payouts by the insurers.

This systematic approach aids in streamlining claims processing and helps prevent potential fraud associated with multiple policies for the same individual. Properly understanding COB is vital for insurance professionals, as it significantly impacts how coverage is effectively managed and utilized.