A disability policy shall contain a provision which shall include the following first
paragraph and which may, at the option of the insurer, include either or both of the
following second and third paragraphs. If the provision contains the second paragraph, there shall be inserted in the blank
an amount which shall not exceed one thousand dollars ($1,000).
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.
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 $__________, 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.
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 that loss,
be paid directly to the person or persons having paid for the hospitalization or medical or surgical aid,
or to the hospital or person rendering those services; but it is not required that the service be rendered by a particular hospital
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