KRS 304.17-130: Person to whom indemnity payable.

(1) 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 payment which may be

prescribed herein and effective at the time of payment. If no designation or

provision is then effective, any 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 a beneficiary or to the estate. All other

indemnities will be payable to the insured."

(2) Except as provided in KRS 304.17A -265 and 304.17C -137, the following

provisions, or either of them, may be included with the provision required under

subsection (1) of this section 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 sh all not exceed $5,000), 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 dis charge the

insurer to the extent of the payment."; and

(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 the loss, be paid directly to the hospital or person rendering

services, but it is not required that the service be render ed by a particular

hospital or person."