Ch. 651                             MARVIN MANDEL, Governor                                1333

382.

Whenever it shall appear that a resident of this State has died intestate leaving an
estate which consists of assets or property, including life insurance proceeds, in a
total amount not exceeding $1,000.00 the insurer may, at its option, pay such life
insurance proceeds to the surviving spouse, or to a child or children of the
decedent, or to a surviving parent, without the necessity of the grant of letters of
administration, provided such person or persons shall furnish the insurer with an
affidavit to the effect that the entire estate of the decedent, including such
insurance proceeds, is in a total amount not exceeding $1,000.00 or such person
shall furnish a certificate of administration as provided by the Small Estate Law,
Secs. 162 and 163 of Article 93. If any such person is [a minor] UNDER
EIGHTEEN YEARS OF AGE, the insurer may, at its option, make payment of
the share of such minor to any institution, or to any person related to the minor,
having custody of such minor, without requiring such institution or related person
to be appointed the legal guardian of such minor. Payment by the insurer under
the provisions of this section, or under the provisions of a facility of payment
clause in any life insurance policy, shall discharge the insurer from all further
liability with respect to such insurance proceeds.

398.

(a) A life insurance policy shall have the name of the beneficiary designated
thereon, or in the application or other form if attached to the policy, with a
reservation of the right to designate or change the beneficiary after the issuance of
the policy, unless such beneficiary be irrevocably designated. At the option of the
insurer, the policy may also provide that no designation or change of beneficiary
shall be binding on the insurer until endorsed on the policy by the insurer, or
otherwise accepted by the insurer. The policy may also provide that if the
beneficiary designated in the policy does not make a claim under the policy or does
not surrender the policy with due proof of death within the period stated in the
policy, which shall not be less than thirty (30) days after the death of the insured,
or if the beneficiary is the estate of the insured, or is [a minor] UNDER
EIGHTEEN YEARS OF AGE, or dies before the insured, or is not legally
competent to give a valid release, then the insurer may make any payment
thereunder to the estate of the insured, or to any relative of the insured by blood
or legal adoption or connection by marriage, or to any person appearing to the
insurer to be equitably entitled thereto by reason of having been named
beneficiary, or by reason of having incurred expense for the maintenance, medical
attention or burial of the insured. The policy may also include a similar provision
applicable to any other payment due under the policy.

422A.

(1) Insurance under any group life insurance policy issued pursuant to Secs. 418
through 422 may, if seventy-five per centum of the then insured employees or
members or any class or classes thereof, elect, be extended to insure the spouse
and minor children of each such insured employee or member who so elects, in
amounts in accordance with a plan which precludes individual selection by the
employees or members or by the employer or trustee. The policy may provide that
the term "minor children" shall include the insured employee's or member's child
under [21] 18 years of age or his child [21] 18 years or older who is attending an
educational institution and relying upon the insured employee or member for
financial support. The insurance on the life of any spouse or child shall not be in
excess of fifty per centum of the insurance on the life of the insured employee or
member, or $2,000 in the case of a spouse, or $1,000 in the case of a child,
whichever is less.