Receipts not normally apportioned -- Insurance policy or contract.

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  • (1) This section does not apply to a contract to which Section 22-3-409 applies.
  • (2)
    • (a) Except as otherwise provided in Subsection (3), a fiduciary shall allocate to principal the proceeds of a life insurance policy or other contract received by the fiduciary as beneficiary, including a contract that insures against damage to, destruction of, or loss of title to an asset.
    • (b) The fiduciary shall allocate dividends on an insurance policy:
      • (i) to income, to the extent premiums on the policy are paid from income; and
      • (ii) to principal, to the extent premiums on the policy are paid from principal.
  • (3) A fiduciary shall allocate to income proceeds of a contract that insures the fiduciary against loss of:
    • (a) occupancy or other use by a current income beneficiary;
    • (b) income; or
    • (c) subject to Section 22-3-403, profits from a business.




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