Instructions to an insurance company about where and to whom to make payment are known as what?

Prepare for the NCMA Official Test with multiple choice questions and detailed explanations. Enhance your knowledge and boost your confidence for the actual test.

The correct response, which is "Assignment of benefits," refers to a process often used in insurance practices. This term is understood as a provision where the policyholder transfers their rights to receive benefits or payments to a third party, typically a healthcare provider or facility. By doing this, the insurance company is instructed on who should receive the payment and where to direct the funds without requiring further input from the policyholder. This is significant because it streamlines the process of payment between the insurance provider and the service provider, ensuring that claims are settled without additional delays.

In this context, an "authorization" typically pertains to the approval from the insurance company for certain medical treatments or services, rather than directing payment. "Claim submission" refers to the action of submitting a request for payment for services rendered by the health care provider to the insurance company. "Payment information" may involve details on how to process the payments but does not specifically encompass the act of assigning benefits to third parties. Thus, "Assignment of benefits" is the most accurate term that encapsulates the instructions regarding payment direction.

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