Insurable interest of trustee

(a) 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: (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 when 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 an insurable interest in the life of the insured. (b) This section applies to any trust existing before, on, or after January 1, 2022, 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 an insured is alive on or after January 1, 2022. (c) As used in this section, "settlor" means a person that executes a trust instrument. "Settlor" includes a person for whom a fiduciary or agent is acting.