2006 New York Code - Insurance policies and similar contracts

 
  § 11-A-4.7 Insurance policies and similar contracts
    (a)  Except  as  otherwise  provided in paragraph (b), 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 11-A-4.3, loss of profits
  from a business.
    (c) This section does not  apply  to  a  contract  to  which  11-A-4.9
  applies.