1. Except as provided in subsection 2, all benefits under any blanket health policy
or contract must be payable to the person insured, or to the designated beneficiary
or beneficiaries of the person insured, or to the estate of the person insured, except
that if the person insured is a minor or otherwise not competent to give a valid release,
these benefits may be made payable to the parent or guardian of the person insured
or to another person actually supporting the person insured.
2. The policy may provide that all or a portion of any indemnities provided by any
such policy on account of hospital, nursing, medical or surgical services, home health
care or supportive services:
(a) May, at the option of the insurer and unless the insured requests otherwise in
writing not later than the time of filing proofs of such loss; or
(b) Must, upon the written request of the insured,
be paid directly to the hospital or person rendering those services. The policy may not require that the service be rendered by a particular hospital or
person. Payment so made discharges the obligation of the insurer with respect to the amount
of insurance so paid.
3. If the insured assigns his or her benefits pursuant to this section but the insurer
after receiving a copy of the assignment pays the benefits to the insured, the insurer
shall also pay the benefits to the assignee as soon as the insurer receives the notice
of the incorrect payment.
FindLaw Codes may not reflect the most recent version of the law in your jurisdiction. Please verify the status of the code you are researching with the state legislature or via Westlaw before relying on it for your legal needs.
Was this helpful?
Response sent, thank you
Welcome to FindLaw's Cases & Codes
A free source of state and federal court opinions, state laws, and the United States Code. For more information about the legal concepts addressed by these cases and statutes, visit FindLaw's Learn About the Law.