72-38-113. Insurable interest of trustee. (1) In this section, “settlor” means a person who executes a trust instrument. The term includes a person for which a fiduciary or agent is acting.

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Terms Used In Montana Code 72-38-113

  • Fiduciary: A trustee, executor, or administrator.
  • Person: means an individual, corporation, business trust, estate, trust, partnership, limited liability company, association, joint venture, government, governmental subdivision, agency, or instrumentality, public corporation, or any other legal or commercial entity. See Montana Code 72-38-103
  • Settlor: means a person, including a testator, who creates or contributes property to a trust. See Montana Code 72-38-103
  • Trust instrument: means an instrument executed by the settlor that contains terms of the trust, including any amendments thereto. See Montana Code 72-38-103
  • Trustee: A person or institution holding and administering property in trust.
  • Trustee: includes an original, additional, and successor trustee and a cotrustee. See Montana Code 72-38-103

(2)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:

(a)the insured is:

(i)a settlor of the trust; or

(ii)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

(b)the life insurance proceeds are primarily for the benefit of one or more trust beneficiaries who have an insurable interest in the life of the insured as provided in 33-15-201.