S 11-A-4.7 Insurance policies and similar contracts
  (a)  Except  as  otherwise  provided in paragraph (b), a trustee shall
allocate to principal the proceeds of a life insurance policy  or  other
contract  in  which  the  trust  or its trustee is named as beneficiary,
including a contract that insures the trust or its trustee against  loss
for  damage  to,  destruction of, or loss of title to a trust asset. The
trustee shall allocate dividends on an insurance policy to income if the
premiums on the policy are paid from income, and  to  principal  if  the
premiums are paid from principal.
  (b)  A  trustee  shall  allocate to income proceeds of a contract that
insures the trustee against loss of occupancy or other use by an  income
beneficiary,  loss  of  income, or, subject to 11-A-4.3, loss of profits
from a business.
  (c) This section does not  apply  to  a  contract  to  which  11-A-4.9