22-3-407. Receipts not normally apportioned — Insurance policy or contract.
(1)
This section does not apply to a contract to which Section 22-3-409 applies.
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Terms Used In Utah Code 22-3-407
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.
Fiduciary: A trustee, executor, or administrator.
(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.
