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.