North Carolina General Statutes 36C-1-114. Insurable interest of trustee
(a) As used in this section, the term “settlor” means a person that executes a trust instrument. The term includes a person for whom a fiduciary or agent is acting.
(b) A trustee of a trust has an insurable interest in the life of an individual insured under a life insurance policy that is trust property if, as of the date the policy is issued:
(1) The insured is either of the following:
a. A settlor of the trust.
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.
Terms Used In North Carolina General Statutes 36C-1-114
- Common law: The legal system that originated in England and is now in use in the United States. It is based on judicial decisions rather than legislative action.
- Fiduciary: A trustee, executor, or administrator.
- following: when used by way of reference to any section of a statute, shall be construed to mean the section next preceding or next following that in which such reference is made; unless when some other section is expressly designated in such reference. See North Carolina General Statutes 12-3
- property: shall include all property, both real and personal. See North Carolina General Statutes 12-3
- Statute: A law passed by a legislature.
- Trustee: A person or institution holding and administering property in trust.
(2) The life insurance proceeds are primarily for the benefit of one or more trust beneficiaries that have an insurable interest in the life of the insured.
(c) This section does not limit or abridge any insurable interest or right to insure now existing at common law or by statute and shall be construed liberally to sustain insurable interests, whether as a declaration of existing law or as an extension of or addition to existing law. (2013-91, s. 2(a).)