(a) A trustee of a trust has an insurable interest in the life of an individual insured under a life insurance policy that is owned by the trustee of the trust acting in a fiduciary capacity or that designates the trust itself as the owner if, on the date the policy is issued:
         (1) the insured is:

Terms Used In Illinois Compiled Statutes 760 ILCS 3/113

  • 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
  • Fiduciary: A trustee, executor, or administrator.
  • individual: shall include every infant member of the species homo sapiens who is born alive at any stage of development. See Illinois Compiled Statutes 5 ILCS 70/1.36
  • Trustee: A person or institution holding and administering property in trust.

             (A) a settlor or beneficiary of the trust; or
             (B) an individual in whom a settlor of the trust
        
has, or would have had if living at the time the policy was issued, an insurable interest; and
        (2) the trustee determines the life insurance
    
proceeds:
            (A) are for the benefit of one or more trust
        
beneficiaries that have an insurable interest in the life of the insured; or
            (B) will carry out a purpose of the trust.
     (b) If a trustee of a trust would have an insurable interest in the life of an individual insured as described in this Section, then the insurable interest includes the joint lives of such an individual and his or her spouse.
     (c) Nothing in this Section limits or affects any provision of the Viatical Settlements Act of 2009.
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