KRS 304.18-090: Payment of benefits under blanket health insurance policy or contract.

Except as provided in KRS 304.17A-265 and 304.17C-137:

(1) Subject to subsection (2) of this section, all benefits under any blanket health

insurance policy or co ntract shall be payable to the person insured, or to the

person's designated beneficiary or beneficiaries, or to the person's estate, except that

if the person insured is a minor or otherwise not competent to give a valid release,

the benefits may be made payable to the person's parent, guardian, conservator, or

other person actually supporting the minor or person not competent to give a valid

release; and

(2) (a) A blanket health insurance policy or contract may provide that all or a portion

of any indemni ties provided by the policy or contract on account of hospital,

nursing, medical, or surgical services 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, be paid dir ectly to the hospital or person rendering

such services, but the policy or contract may not require that the service be

rendered by a particular hospital or person.

(b) Payment made directly to a hospital or other person for all or a portion of any

indemnities provided by a blanket health insurance policy or contract shall

discharge the obligation of the insurer with respect to the amount of insurance

so paid.