                                 CODE OF VIRGINIA

PAYMENT OF BENEFITS (§ 38.2-3538)

Each group accident and sickness insurance policy shall contain a provision that
benefits for loss of life of the person insured shall be payable to the
beneficiary designated by the person insured. However, if the policy contains
conditions pertaining to family status, the beneficiary may be the family member
specified by the policy terms. In either case, payment of those benefits is
subject to the provisions of the policy in the event no such designated or
specified beneficiary is living at the death of the person insured. The policy
may also provide that if any benefit is payable to the estate of a person, or to
a person who is a minor or otherwise not competent to give a valid release, the
insurer may pay the benefit, up to an amount not exceeding $5,000, to any
relative by blood or connection by marriage of the person who is deemed by the
insurer to be equitably entitled to the benefit. The policy may also provide
that all or any portion of any benefits provided for health care services may be
paid to the health care services provider. All other benefits of the policy
shall be payable to the person insured.

HISTORY: 1986, c. 562; 1991, c. 87.