Texas Insurance Code 1204.054 – Payment of Benefits According to Assignment
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Terms Used In Texas Insurance Code 1204.054
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
- Person: includes corporation, organization, government or governmental subdivision or agency, business trust, estate, trust, partnership, association, and any other legal entity. See Texas Government Code 311.005
- Written: includes any representation of words, letters, symbols, or figures. See Texas Government Code 311.005
An insurer shall pay benefits directly to a physician or other health care provider, and the insurer is relieved of the obligation to pay, and of any liability for paying, those benefits to the covered person if:
(1) the covered person makes a written assignment of those benefits payable to the physician or other health care provider; and
(2) the assignment is obtained by or delivered to the insurer with the claim for benefits.