31A-22-421 - Facility of payment under certain life insurance policies.
31A-22-421. Facility of payment under certain life insurance policies.
A life insurance policy with a face value of $5,000 or less may provide that if thebeneficiary designated in the policy does not make a claim under the policy or does not surrenderthe policy with due proof of death within a period stated in the policy, which may not be less than30 days after the death of the insured, or if the beneficiary is the estate of the insured, or is aminor, or dies before the insured, or is not legally competent to give a valid release, then theinsurer may make any payment under the policy to the executor or administrator of the insured, orto any relative of the insured by blood or legal adoption or connection by marriage, or to anyperson appearing to the insurer to be equitably entitled to the payment by reason of havingincurred expense for the maintenance, medical attention, or burial of the insured, or for otherreasons. The policy may also include a similar provision applicable to any other payment dueunder the policy.
Enacted by Chapter 242, 1985 General Session