What the AOB is
The Assignment of Benefits is a written agreement signed by the patient (the assignor) transferring their no-fault PIP benefit rights to the provider (the assignee) for the specific treatment billed. With a valid AOB, the provider can bill the carrier directly and pursue arbitration in its own name.
Required elements of a valid AOB
Patient's full legal name and signature, signature date, identification of the provider, scope of the assignment (typically 'all no-fault benefits for treatment rendered'), and the patient's acknowledgment of the assignment.
Some carriers also require the AOB to specifically reference the date of accident or the policy. A clean, plain-language template that satisfies all of these elements is the safest approach.
Common AOB defects
Unsigned forms, undated signatures, signatures by someone other than the patient (a spouse or parent of an adult patient is generally invalid), AOBs that don't identify the billing provider, and AOBs that limit the assignment in ways that exclude arbitration recovery.
What happens when the AOB is defective
The carrier can deny the NF-3 bill on AOB grounds and refuse to deal with the provider directly. At arbitration, a defective AOB can defeat the provider's standing entirely — meaning the provider loses even if the underlying treatment was medically necessary and properly billed.
Fixing AOB problems
If discovered before arbitration, a corrected AOB can usually be obtained from the patient and re-submitted with the bill. Once arbitration is filed, fixing the AOB becomes more difficult — provider should audit AOBs at intake, not after a denial.
Frequently asked questions
Is an AOB required to bill no-fault in NY?
Yes, if the provider wants to bill the carrier directly and pursue arbitration in its own name. Without a valid AOB, the patient is the only party who can pursue the claim.
Can a spouse sign an AOB for an adult patient?
Generally no. The AOB must be signed by the patient personally unless the patient is legally incapacitated and the signer has documented authority (guardian, power of attorney).
Can a defective AOB be cured?
Often yes, by obtaining a corrected AOB from the patient and re-submitting. The earlier the defect is identified, the easier the fix.
Need help applying this in a real case?
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