55-277.16 - Insurance policies and similar. - Virginia Statutes

§ 55-277.16. Insurance policies and similar.

A. Except as otherwise provided in subsection B, 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,or loss of title to a trust asset. The trustee shall allocate dividends on aninsurance policy to income if the premiums on the policy are paid fromincome, and to principal if the premiums are paid from principal.

B. A trustee shall allocate to income proceeds of a contract that insures thetrustee against loss of occupancy or other use by an income beneficiary, lossof income, or, subject to § 55-277.12, loss of profits from a business.

C. This section does not apply to a contract to which § 55-277.18 applies.

(1999, c. 975.)