Except as provided in KRS § 304.17A-265:
(1) Subject to subsection (2) of this section, all benefits under any blanket health insurance policy or contract 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

Terms Used In Kentucky Statutes 304.18-090

  • Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. Source: OCC
  • Contract: A legal written agreement that becomes binding when signed.
  • Guardian: A person legally empowered and charged with the duty of taking care of and managing the property of another person who because of age, intellect, or health, is incapable of managing his (her) own affairs.
  • Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
  • Statute: A law passed by a legislature.

(2) (a) A blanket health insurance policy or contract may provide that all or a portion of any indemnities 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 directly 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.
Effective: June 29, 2023
History: Amended 2023 Ky. Acts ch. 86, sec. 4, effective June 29, 2023. — Amended
1982 Ky. Acts ch. 141, sec. 86, effective July 1, 1982. — Created 1970 Ky. Acts ch.
301, subtit. 18, sec. 9, effective June 18, 1970.
Legislative Research Commission Note (6/29/2023). This statute was amended by 2023
Ky. Acts ch. 86, sec. 4. Section 8 of that Act provides that the Act applies to health insurance policies in effect on or after June 29, 2023, and to health insurance policies issued, delivered, or renewed on or after June 29, 2023.
Note: 1980 Ky. Acts ch. 396, sec. 91 would have amended this section effective July 1,
1982. However, 1980 Ky. Acts ch. 396 was repealed by 1982 Ky. Acts ch. 141, sec.
146, also effective July 1,1982.