75A-5-407. Receipts not normally apportioned -- Insurance policy or contract.
(1) This section does not apply to a contract to which Sectionapplies. 75A-5-409
(2) Except as otherwise provided in Subsection (3), a fiduciary shall allocate to principal the proceeds of a life insurance policy or other contract received by the fiduciary as beneficiary, including a contract that insures against damage to, destruction of, or loss of title to an asset. The fiduciary shall allocate dividends on an insurance policy: to income, to the extent premiums on the policy are paid from income; and to principal, to the extent premiums on the policy are paid from principal.
(3) A fiduciary shall allocate to income proceeds of a contract that insures the fiduciary against loss of: occupancy or other use by a current income beneficiary; income; or subject to Section, profits from a business. 75A-5-403