A group health 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 these 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. All other benefits of the policy shall be payable to 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 such benefit, up to an amount not exceeding $5,000, to any relative by blood or connection by marriage of such person who is deemed by the insurer to be equitably entitled thereto.
Structure Delaware Code
Chapter 35. GROUP AND BLANKET HEALTH INSURANCE
Subchapter I. Group Health Insurance
§ 3501. Group policies must meet group requirements.
§ 3504. Labor union or employee organization groups.
§ 3509. Requirements for other groups; out-of-state groups.
§ 3510. Disclosure requirements for other groups.
§ 3512. Group health insurance standard provisions generally.
§ 3515. Application; statements deemed representations.
§ 3522. Proofs of loss; disability.
§ 3523. Time for payment of benefits.
§ 3525. Physical examinations.
§ 3527. Information to debtors.