58-9-407. Insurance policies and similar contracts. - Kansas Statutes

58-9-407

Chapter 58.--PERSONAL AND REAL PROPERTY Part 4.--ALLOCATION OF RECEIPTS DURING ADMINISTRATION OF TRUST Article 9.--UNIFORM PRINCIPAL AND INCOME ACT (1997)

      58-9-407.   Insurance policies and similarcontracts.(a) Except as otherwise provided in subsection (b), a trusteeshallallocateto principal the proceeds of a life insurance policy or other contract in whichthetrust or its trustee is named as beneficiary, including a contract that insuresthe trustor its trustee against loss for damage to, destruction of, or loss of title toa trustasset. The trustee shall allocate dividends on an insurance policy to incomeif thepremiums on the policy are paid from income, and to principal if the premiumsarepaid from principal.

      (b)   A trustee shall allocate to income proceeds of a contract that insuresthetrustee against loss of occupancy or other use by an income beneficiary, lossof income, or, subject to K.S.A. 58-9-403 and amendments thereto,loss ofprofitsfrom a business.

      (c)   This section does not apply to a contract to which K.S.A. 58-9-409 andamendments thereto applies.

      History:   L. 2000, ch. 61, § 16; July 1.