2005 Idaho Code - 68-10-407 — INSURANCE POLICIES AND SIMILAR CONTRACTS

                                  TITLE  68
                            TRUSTS AND FIDUCIARIES
                                  CHAPTER 10
                       UNIFORM PRINCIPAL AND INCOME ACT
                                   PART 4.
            ALLOCATION OF RECEIPTS DURING ADMINISTRATION OF TRUST
    68-10-407.  INSURANCE POLICIES AND SIMILAR CONTRACTS. (a) Except as
otherwise provided in subsection (b) of this section, a trustee shall allocate
to principal the proceeds of a life insurance policy or other contract in
which the trust or its trustee is named as beneficiary, including a contract
that insures 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
an insurance policy to income if the premiums on the policy are paid from
income, and to principal if the premiums are paid from principal.
    (b)  A trustee shall allocate to income proceeds of a contract that
insures the trustee against loss of occupancy or other use by an income
beneficiary, loss of income or, subject to section 68-10-403, Idaho Code, loss
of profits from a business.
    (c)  This section does not apply to a contract to which section 68-10-409,
Idaho Code, applies.