Sec. 45a-542o. Insurance policies and similar contracts.
Sec. 45a-542o. 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 45a-542k, loss of profits from a business.
(c) This section does not apply to a contract to which section 45a-542q applies.
(P.A. 99-164, S. 16, 36.)
History: P.A. 99-164 effective January 1, 2000.