KRS 304.16-170: Beneficiary.

(1) There shall be a provision that any sum becoming due by reason of the death of the

individual insured shall be payable to the beneficiary designated by such individual,

subject to the provisions of the policy in the event there is no designated

beneficiary, as to all or any part of such sum, living at the death of the individual

insured and subject to any right reserved by the insurer in the policy and set forth in

the certificate to pay, at its option a part of such sum not exceeding two thousand

dollars ( $2,000) to any person appearing to the insurer to be equitably entitled

thereto by reason of having incurred funeral or other expenses incident to the last

illness or death of the individual insured.

(2) In the case of a group life insurance policy issued to an employer or the employer's

trustee of a pension or other benefit plans established by an employer for the benefit

of the employer's employees, there may be a provision in the policy that any sum

becoming due by reason of the death of any insured shal l be payable to the trustees

of the pension or other benefit plan or fund.