17B:26-12 - Payment of claims - New Jersey Statutes

17B:26-12.  Payment of claims
    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.

    (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 $1,000.00) 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.)

     L.1971, c. 144, s. 17B:26-12.