MI SB1102

Adds Section 7114 to the Estates and Protected Individuals Code to establish that a trust's trustee has an insurable interest in the life of an individual insured under a life insurance policy owned by the trustee in a fiduciary capacity or owned by the trust itself.

Requires that on the date the policy is issued, the insured must be either a settlor of the trust or an individual in whom a settlor has (or would have had) an insurable interest.

Requires that life insurance proceeds be primarily for the benefit of one or more trust beneficiaries who either have an insurable interest in the insured's life or have a substantial interest engendered by love and affection in the insured's continuation of life.

Limits beneficiaries with love and affection interests to those related within the third degree to the insured under civil law measurements of kinship, or stepchildren of the insured.

Takes effect only upon enactment of Senate Bill No. 1103 of the 96th Legislature.