US Laws, Codes, Statutes & Cases

                                  TITLE  41
                                  INSURANCE
                                  CHAPTER 21
                        DISABILITY INSURANCE POLICIES
    41-2113.  PAYMENT OF CLAIMS. (1) There shall be a provision as follows:
    "Payment of Claims: Indemnity for loss of life will be payable in
accordance with the beneficiary designation and the provisions respecting such
payment which may be prescribed herein and effective at the time of payment.
If no such designation or provision is then effective, such indemnity shall be
payable to the estate of the insured. Any other accrued indemnities unpaid at
the insured's death may, at the option of the insurer, be paid either to such
beneficiary or to such estate. All other indemnities will be payable to the
insured."
    (2)  The following provisions, or either of them, may be included with the
foregoing provision at the option of the insurer:
    (a)  "If any indemnity of this policy shall be payable to the estate of
the insured, or to an insured or beneficiary who is a minor or otherwise not
competent to give a valid release, the insurer may pay such indemnity, up to
an amount not exceeding $ .... (insert an amount which shall not exceed
$1,000), to any relative by blood or connection by marriage of the insured or
beneficiary who is deemed by the insurer to be equitably entitled thereto. Any
payment made by the insurer in good faith pursuant to this provision shall
fully discharge the insurer to the extent of such payment."
    (b)  "Subject to any written direction of the insured in the application
or otherwise all or a portion of any indemnities provided by this policy on
account of hospital, nursing, medical or surgical services may, at the
insurer's option and unless the insured requests otherwise in writing not
later than the time of filing proofs of such loss, be paid directly to the
hospital or person rendering such services; but it is not required that the
service be rendered by a particular hospital or person."