                                 CODE OF VIRGINIA

INSURANCE POLICY OR CONTRACT (§ 64.2-1054)

A. This section does not apply to a contract to which &#xA7; 64.2-1056 applies.

B. Except as otherwise provided in subsection C, 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. The fiduciary shall allocate
dividends on an insurance policy to income to the extent premiums on the policy
are paid from income and to principal to the extent premiums on the policy are
paid from principal.

C. A fiduciary shall allocate to income proceeds of a contract that insures the
fiduciary against loss of:

   1. Occupancy or other use by a current income beneficiary;

   2. Income; or

   3. Subject to &#xA7; 64.2-1050, profits from a business.

HISTORY: 2022, c. 354.