{"data":{"id":"us-ky/krs-386b.1-120","jurisdiction":"us-ky","citation":"KRS 386B.1-120","heading":"Insurable interest of trustee.","body":"(1) As used in this section, \"settlor\" means a person that executes a trust instrument.\nThe term includes a person for which a fiduciary or agent is acting.\n(2) A trustee of a trust has an insurable interest in the life of an individual insured under\na life insurance policy that is owned by the trustee of the trust acting in a fiduciary\ncapacity or that designates the trust itself as the owner if, on the date the policy is\nissued:\n(a) The insured is:\n1. A settlor of the trust; or\n2. An individual in whom a sett lor of the trust has, or would have had if\nliving at the time the policy was issued, an insurable interest; and\n(b) The life insurance proceeds are primarily for the benefit of one (1) or more\ntrust beneficiaries that have:\n1. An insurable interest in the life of the insured; or\n2. A substantial interest engendered by love and affection in the\ncontinuation of the life of the insured and, if not already included under\nsubparagraph 1. of this paragraph, who are:\na. Related within the third degree or closer, a s measured by the civil\nlaw system of determining degrees of relation, either by blood or\nlaw, to the insured; or\nb. Stepchildren of the insured.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=43075","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:59:18Z","sha256":"cc755564c0a21978f594bf9afba441732337a85969f25a3b9d7e752e2e884939","source_id":"us-ky","stale":false,"prev":"us-ky/krs-386b.1-110","next":"us-ky/krs-386b.10-010"},"notice":"GroundRules: Original legal text. Not legal advice."}