§ 36C-9-903.1. Duties as to life insurance.
§ 36C‑9‑903.1. Duties as to life insurance.
(a) Notwithstanding theprovisions of this Article, the duties of a trustee with respect to acquiringor retaining a contract of insurance upon the life of the settlor, or the livesof the settlor and the settlor's spouse, do not include a duty (i) to determinewhether any such contract is or remains a proper investment; (ii) to exercisepolicy options, including investment options, available under any suchcontract; or (iii) to diversify any such contract. A trustee is not liable tothe beneficiaries of the trust or to any party for any loss arising from theabsence of those duties upon the trustee.
(b) The trustee of atrust described under subsection (a) of this section established prior toOctober 1, 1995, shall notify the settlor in writing that, unless the settlorprovides written notice to the contrary to the trustee within 60 days of thetrustee's notice, the provisions of subsection (a) of this section shall applyto the trust. Subsection (a) of this section shall not apply if, within 60 daysof the trustee's notice, the settlor notifies the trustee that subsection (a)of this section shall not apply. (2007‑106, s. 37.1.)