Sec. 1251.114. PAYMENT OF BENEFITS. (a) A group accident and health insurance policy must provide that all benefits of the policy, other than benefits for loss of life, must be paid to the insured or the insured's assignee.
(b) A group accident and health insurance policy must provide that, subject to the provisions of the policy, benefits for loss of life of an insured must be paid to:
(1) the beneficiary designated by the insured or the beneficiary's assignee;
(2) the family member specified by the policy terms, if the policy contains conditions relating to family status; or
(3) the estate of the insured, if the designated or specified beneficiary is not living at the time the insured dies.
(c) A group accident and health insurance policy may provide that if any benefits are payable to the estate of an individual or to an individual who is a minor or is otherwise not competent to give a valid release, the insurer may pay the benefits, up to an amount established by the commissioner, to any individual related by consanguinity or affinity to the individual who is considered by the insurer to be equitably entitled to the benefits.
(d) This section does not apply to:
(1) a credit accident and health insurance policy; or
(2) a group contract issued by a group hospital service corporation.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 3, eff. April 1, 2005.
Section: Previous 1251.107 1251.108 1251.109 1251.110 1251.111 1251.112 1251.113 1251.114 1251.115 1251.116 1251.117 1251.151 1251.152 1251.153 1251.154 NextLast modified: September 28, 2016