Insurable interest of trustee
NMSA 1978, § 46A-1-113
in effect46A-1-113. Insurable interest of trustee
A. In this section, "settlor" means a person that executes a trust instrument. "Settlor" includes a person for which 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 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 at the time the policy was issued, an insurable interest; and
(2) the life insurance proceeds are primarily for the benefit of one or more trust beneficiaries that have:
(a) an insurable interest in the life of the insured; or
(b) a substantial interest engendered by love and affection in the continuation of the life of the insured and, if not already included under Subparagraph (a) of this paragraph, who are: 1) related within the third degree or closer, as measured by the civil law system of determining degrees of relation, either by blood or law, to the insured; or 2) stepchildren of the insured.
1978 Comp., § 46A-1-113, enacted by Laws 2011, ch. 124, § 95; 2016, ch. 69, § 723.
Source: New Mexico Compilation Commission (nmonesource.com)URL: https://nmonesource.com/nmos/nmsa-unanno/en/item/18548/index.do#!b/46A-1-113Fetched: 10/20/2026