[AMENDMENT TO UNIFORM TRUST CODE]

8/29/2008 draft

SECTION [_]. INSURABLE INTEREST; APPLICABILITY.

(a) In addition to any insurable interest otherwise recognized under the law of this state, a trustee of a trust has an insurable interest in the life of an individual insured under a life insurance policy owned by the trust or the trustee of the trust if on the date the policy is issued the individual whose life is insured is:

(1) a settlor of the trust; or

(2) an individual in whom a settlor of the trust has an insurable interest.

[ALTERNATIVE A]

(b) This section applies to any life insurance policy, owned by a trust or trustee, issued before, on, or after the effective date of this [Code], if the policy is in force and the person whose life is insured is alive on or after the effective date of the [Code].

[ALTERNATIVE B]

(b) This section applies to any trust existing before, on, or after the effective date of the section, regardless of the effective date of the governing instrument under which the trust was created, but only as to a life insurance policy that is in force and for which the insured is alive on or after the effective date of the section.

[SECTION [_]. EFFECTIVE DATE. This [act] takes effect . . . .]