38.2-3538 - Payment of benefits. - Virginia Statutes

§ 38.2-3538. Payment of benefits.

Each group accident and sickness insurance policy shall contain a provisionthat benefits for loss of life of the person insured shall be payable to thebeneficiary designated by the person insured. However, if the policycontains conditions pertaining to family status, the beneficiary may be thefamily member specified by the policy terms. In either case, payment ofthose benefits is subject to the provisions of the policy in the event nosuch designated or specified beneficiary is living at the death of the personinsured. The policy may also provide that if any benefit is payable to theestate of a person, or to a person who is a minor or otherwise not competentto give a valid release, the insurer may pay the benefit, up to an amount notexceeding $5,000, to any relative by blood or connection by marriage of theperson who is deemed by the insurer to be equitably entitled to the benefit.The policy may also provide that all or any portion of any benefits providedfor health care services may be paid to the health care services provider.All other benefits of the policy shall be payable to the person insured.

(1986, c. 562; 1991, c. 87.)