2011 New Mexico Statutes
Chapter 46A: Uniform Trust Code
Article 1: General Provisions and Definitions, 46A-1-101 through 46A-1-113
Section 46A-1-113: Insurable interest of trustee. (Effective January 1, 2012.)

46A-1-113. Insurable interest of trustee. (Effective January 1, 2012.)

A. In this section, "settlor" means a person, including a person for which a fiduciary or agent is acting, that executes a trust instrument.

B. A trustee of a trust has an insurable interest in the life of an individual insured under a life insurance policy owned by the trust or the trustee of the trust acting in a fiduciary capacity if, on the date the policy is issued:

(1) the insured is:

(a) a settlor of the trust; or

(b) an individual in whom a settlor of the trust has, or would have had if living at the time the policy was issued, an insurable interest; and

(2) the life insurance proceeds are primarily for the benefit of trust beneficiaries that have:

(a) an insurable interest in the life of the insured; or

(b) a substantial interest engendered by love and affection in the continuation of the life of the insured and, if not already included under Subparagraph (a) of this paragraph, who are: 1) related within the third degree or closer, as measured by the civil law system of determining degrees of relation, either by blood or law, to the insured; or 2) stepchildren of the insured.