33-22-604. Payment of claims -- discharge. (1) (a) Subject to subsection (1)(b), all benefits under a blanket disability policy must be payable to:

(i) 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 is mentally incompetent, the benefits may be made payable to the parent, guardian, or other person actually supporting the person; or

(ii) the employer, if the entire cost of the insurance has been borne by the employer.

(b) The policy may provide that all or any portion of any indemnities provided by the policy on account of hospital, nursing, medical, or surgical services may, at the insurer's option, be paid directly to the hospital or person rendering the services, but the policy may not require that the service be rendered by a particular hospital or person.

(2) Payment made as provided in subsection (1) discharges the insurer's obligation with respect to the amount of insurance paid.