§431:10A-205  Payment of benefits.  (a) 
The benefits payable under any policy or contract of group or blanket
disability insurance shall be payable to the insured member of the group or to
the beneficiary designated by the insured member, other than the policyholder,
subject to provisions of the policy in the event the claimant is insane or
otherwise incompetent, or in the event there is no designated beneficiary as to
all or any part of any sum payable at the death of the individual insured;
provided, that if the entire cost of the insurance has been borne by the
employer such benefits may be made payable to the employer.



(b)  Any group or blanket disability 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 such
services, but the policy may not require that the service be rendered by a
particular hospital or person.  Payment so made shall discharge the insurer's
obligation with respect to the amount so paid.



(c)  No group disability income policy shall
contain any provision integrating the benefits of the policy with social
security benefits whereby the amount of the disability benefit actually being
paid to the disabled person under the terms and conditions of the policy will
be diminished when there occurs an increase in social security benefits either
by operation of amendments to the Social Security Act or by cost of living adjustments
which become effective after the first day the disabled person becomes entitled
to benefits. [L 1987, c 347, pt of §2]