(a)
(1) All benefits under any blanket accident and health insurance policy shall be payable to the person insured, to the designated beneficiaries, or to his or her estate.
(2) However, if the person insured is a minor or mental incompetent, the benefits may be made payable to the parent, guardian, or other person actually supporting the minor or mental incompetent. If the entire cost of the insurance has been borne by the employer, the benefits may be made payable to the employer.
(b)
(1) However, 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, at the insurer's option, may 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 so made shall discharge the insurer's obligation with respect to the amount of insurance paid.