(a) Except as otherwise provided in (b) or (c) 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. If the premiums on the policy or contract are paid from income, the trustee shall allocate dividends on the policy or contract to income. If the premiums on the policy or contract are paid from principal, the trustee shall allocate dividends on the policy or contract to principal.
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Terms Used In Alaska Statutes 13.38.660

  • Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. Source: OCC
  • Contract: A legal written agreement that becomes binding when signed.
  • Trustee: A person or institution holding and administering property in trust.
(b) Except as provided in (c) of this section, a trustee shall allocate to income proceeds of a contract that insures the trustee against

(1) loss of occupancy or other use by an income beneficiary;
(2) loss of income; or
(3) subject to Alaska Stat. § 13.38.620, loss of profits from a business.
(c) This section does not apply to a contract to which Alaska Stat. § 13.38.690 applies.
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