Ark. Code Ann. » Title 23 Chapter 85
Arkansas Code Annotated

Ark. Code Ann. § 23-85-114 (2026)

Payment of claims provision

✓ current as of May 2026
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  1. There shall be a provision as follows:
  2. The following provisions, or either of them, may be included with the foregoing provision at the option of the insurer:
    1. “If any indemnity of this policy shall be payable to the estate of the insured, or to an insured or beneficiary who is a minor or otherwise not competent to give a valid release, the insurer may pay such indemnity, up to an amount not exceeding $ (insert an amount which shall not exceed one thousand dollars ($1,000)), to any relative by blood or connection by marriage of the insured or beneficiary who is deemed by the insurer to be equitably entitled thereto. Any payment made by the insurer in good faith pursuant to this provision shall fully discharge the insurer to the extent of payment.”
    2. “Subject to any written direction of the insured in the application or otherwise, all or a portion of any indemnities provided by this policy on account of hospital, nursing, medical, or surgical services may be paid, at the insurer's option and unless the insured requests otherwise in writing not later than the time of filing proofs of such loss, directly to the hospital or person rendering such services, but it is not required that the service be rendered by a particular hospital or person.”

“Payment of Claims: Indemnity for loss of life will be payable in accordance with the beneficiary designation and the provisions respecting such payment which may be prescribed herein and effective at the time of payment. If no such designation or provision is then effective, such indemnity shall be payable to the estate of the insured. Any other accrued indemnities unpaid at the insured's death may, at the option of the insurer, be paid either to such beneficiary or to such estate. All other indemnities will be payable to the insured.”

History. Acts 1959, No. 148, § 397; A.S.A. 1947, § 66-3612.

Case Notes

Applicability.

Automobile insurer's payment of med-pay benefits to a medical center over the insured's objections was upheld where: the policy stated that benefits can be paid “to or for” the insured; sections 23-89-202 and 23-89-204 do not mandate payment only to the insured; section 4-58-102 allows an insured to assign the right to receive insurance proceeds, as the insured had done in this case, and the insurer was obligated by law to honor the assignment and lien; section 23-85-114(b) does not apply to automobile insurance; and there was no evidence that the insured had advised either the insurer or the medical center of a revocation of the specific assignment of benefits to the medical center. United Servs. Auto. Ass'n v. Norton, 2020 Ark. App. 100, 596 S.W.3d 522 (2020).

Assignment.

Subdivision (b)(2) provides the insurer with the option of drafting insurance policies to stipulate that payment shall be made to the provider of medical care services rather than to the insured. However, the insured can prevent the payment of benefits to the provider by so requesting, in writing, at the time of application or when submitting proof of loss. American Medical Int'l, Inc. v. Arkansas Blue Cross & Blue Shield, 299 Ark. 514, 773 S.W.2d 831 (1989).

Chancellor erred in ruling that there was an irreconcilable conflict between subdivision (b)(2) of this section and § 4-58-102 causing the insurance code provisions to repeal the general law on assignments. American Medical Int'l, Inc. v. Arkansas Blue Cross & Blue Shield, 299 Ark. 514, 773 S.W.2d 831 (1989).

Notes of Decisions
Cited in 2 cases, 1989–2020 · leading case: Am. Med. Int'l, Inc. v. Arkansas Blue Cross & Blue Shield, 773 S.W.2d 831 (Ark. 1989).
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Am. Med. Int'l, Inc. v. Arkansas Blue Cross & Blue Shield, 773 S.W.2d 831 (Ark. 1989). · cites it 16× “Mary’s further argued that, as a defense, ABCBS would rely on Ark. Code Ann. § 23-85-114 (b)(2) (1987), part of the Arkansas Insurance Code, which provides: The following [provision] may be included with [foregoing provisions in a policy of insurance] at the option of the…”
United Servs. Automovile Ass'n v. Mary Norton, 2020 Ark. App. 100 (Ark. Ct. App. 2020). · cites it 4× “Such is a misstatement of the holding in American Medical—specifically, that there was no conflict between a health- insurance statute permitting an insurer to choose whom to pay, in the absence of objection, see Ark. Code Ann. § 23-85-114 (b)(2) (Repl. 2014), and a statute…”
Ark. Code Ann. § 23-85-114(b): 1 case
United Servs. Automovile Ass'n v. Mary Norton, 2020 Ark. App. 100 (Ark. Ct. App. 2020). “Such is a misstatement of the holding in American Medical—specifically, that there was no conflict between a health- insurance statute permitting an insurer to choose whom to pay, in the absence of objection, see Ark. Code Ann. § 23-85-114 (b)(2) (Repl. 2014), and a statute…”
Ark. Code Ann. § 23-85-114(b)(2): 1 case
Am. Med. Int'l, Inc. v. Arkansas Blue Cross & Blue Shield, 773 S.W.2d 831 (Ark. 1989). “Mary’s further argued that, as a defense, ABCBS would rely on Ark. Code Ann. § 23-85-114 (b)(2) (1987), part of the Arkansas Insurance Code, which provides: The following [provision] may be included with [foregoing provisions in a policy of insurance] at the option of the…”
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