1. (a) For the purposes of this section, the term "settlor" means a person that executes a trust instrument. The term "settlor" includes a person for which a fiduciary or agent is acting.

2. (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. (1) The insured is:

      1. (A) A settlor of the trust; or
      2. (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. (2) The life insurance proceeds are primarily for the benefit of one or more trust beneficiaries that have:

      1. (A) An insurable interest in the life of the insured; or

      2. (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. (i) 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. (ii) Stepchildren of the insured.

History

Mar. 21, 2025, D.C. Law 25-298, § 2(b)(3), 72 DCR 724

Mar. 21, 2025, D.C. Law 25-298, § 2(b)(3)