N.Y. Estates, Powers & Trusts Law § 11-a-4.7: 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.