§ 26-18-113 — Payment of claims

(a) "Payment of Claims: Indemnity for loss of life is
payable in accordance with the beneficiary designation and the
provisions respecting that payment which may be prescribed in
this policy and effective at the time of payment. If no
designation or provision is then effective, the indemnity is
payable to the insured's estate. Any other accrued indemnities
unpaid at the insured's death, at the insurer's option, may be
paid either to the beneficiary or to the estate. Any other
indemnities are payable to the insured."
(b) Either or both of the following provisions may be
included with the provision specified in subsection (a) of this
section at the insurer's option:
(i) "If any indemnity of this policy is payable to
the insured's estate, or to an insured or beneficiary who is a
minor or otherwise not competent to give a valid release, the
insurer may pay the 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 whom the insurer deems to be equitably entitled
thereto. Any payment the insurer makes in good faith pursuant to
this provision discharges the insurer to the extent of the
payment."
(ii) "Subject to the insured's written direction in
the application or otherwise, all or a portion of any
indemnities provided by this policy because of hospital,
nursing, medical or surgical services, at the insurer's option
and unless the insured requests otherwise in writing not later
than the time of filing proofs of the loss, may be paid directly
to the hospital or person rendering the services, but it is not
required that the service be rendered by a particular hospital
or person."