Illinois § 113 Insurable interest of trustee

Illinois Statutes

§ 113 — Insurable interest of trustee

Illinois § 113

JurisdictionIllinois

TopicRIGHTS AND REMEDIES

Ch. 760TRUSTS AND FIDUCIARIES

Act 760 ILCS 3/Illinois Trust Code.

Art.Article 1 - General Provisions and Definitions

This text of Illinois § 113 (Insurable interest of trustee) is published on Counsel Stack Legal Research, covering Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

760 Ill. Comp. Stat. 113 (2026).

Text

(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 or beneficiary 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 trustee determines the life insurance proceeds:

(A)are for the benefit of one or more trust beneficiaries that have an insurable interest in the life of the insured; or (B) will carry out a purpose of the trust.

(b)If a trustee of a trust would have an insurable interest in the life of an individual i

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(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 or beneficiary 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 trustee determines the life insurance proceeds: (A) are for the benefit of one or more trust beneficiaries that have an insurable interest in the life of the insured; or (B) will carry out a purpose of the trust. (b) If a trustee of a trust would have an insurable interest in the life of an individual insured as described in this Section, then the insurable interest includes the joint lives of such an individual and his or her spouse. (c) Nothing in this Section limits or affects any provision of the Viatical Settlements Act of 2009.