§ 37A-4-407. Insurance policies and similar contracts. - North Carolina Statutes

§ 37A‑4‑407. Insurance policies and similar contracts.

(a)        Except as otherwiseprovided in subsection (b) of this section, a trustee shall allocate toprincipal the proceeds of a life insurance policy or other contract in whichthe trust or its trustee is named as beneficiary, including a contract thatinsures the trust or its trustee against loss for damage to, destruction of, orloss of title to a trust asset. The trustee shall allocate dividends on aninsurance policy to income if the premiums on the policy are paid from incomeand to principal if the premiums are paid from principal.

(b)        A trustee shallallocate to income proceeds of a contract that insures the trustee against lossof occupancy or other use by an income beneficiary, loss of income, or, subjectto G.S. 37A‑4‑403, loss of profits from a business.

(c)        This section doesnot apply to a contract to which G.S. 37A‑4‑409 applies. (2003‑232, s. 2.)