Sec. 45a-499 l. Insurable interest of trustee.
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/ct/title-45a/chapter-802c-trusts/45a-499l·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
A trustee has an insurable interest in the life of an individual insured under a life insurance policy that is owned by the trustee or that designates the trust itself as the owner if, on the date the policy is issued:
(1)The insured is:
(A)A settlor 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 life insurance proceeds are primarily for the benefit of one or more trust beneficiaries who have:
(A)An insurable interest in the life of the insured; or
(B)a substantial interest engendered by love and affection in the continuation of the life of the insured and, if not already included under subdivision
(1)of this section, who are:
(i)Related within the third degree or closer, as measured by the law of this state for determining degrees of relation, either by blood or law, to the insured; or
(ii)stepchildren of the insured.