§ 4-10-112 — 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:
(i) 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
(ii) The life insurance proceeds are primarily for
the benefit of one (1) 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:
(I) Kindred of the insured having a
possibility of being distributees of the insured's estate if the
insured dies intestate pursuant to W.S. 2-4-101; or
(II) Stepchildren of the insured.
(b) This section applies to any trust existing before, on
or after July 1, 2013, 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 July 1, 2013.
(c) As used in this section, "settlor" means a person who
executes a trust instrument. The term includes a person for
which a fiduciary or agent is acting.