Payment of benefits.
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 his designated beneficiary or beneficiaries, or to his estate, 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 his parent, guardian or other person actually supporting him.
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,
Ê 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 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.
Last modified: February 27, 2006