Receipts not normally apportioned -- Insurance policy or contract.
Utah Code § 75A-5-407
in effect75A-5-407. Receipts not normally apportioned -- Insurance policy or contract.
(1) This section does not apply to a contract to which Section 75A-5-409 applies.
(2)
(a) 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.
(b) The fiduciary shall allocate dividends on an insurance policy:
(i) to income, to the extent premiums on the policy are paid from income; and
(ii) 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:
(a) occupancy or other use by a current income beneficiary;
(b) income; or
(c) subject to Section 75A-5-403, profits from a business.
Renumbered and Amended by Chapter 364, 2024 General Session
Source: Utah Office of Legislative Research and General Counsel (le.utah.gov)URL: https://le.utah.gov/xcode/Title75A/Chapter5/75A-5-S407.html?v=C75A-5-S407_2024090120240501Fetched: 10/26/2026