ND HB1135

Creates section 59-09-13 of the North Dakota Century Code to establish insurable interest rules for trustees owning life insurance policies.

Defines a trustee as having insurable interest in an insured's life if the insured is a trust settlor or someone in whom a settlor had, or would have had, an insurable interest.

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

Requires trust beneficiaries without existing insurable interest to be related to the insured within the third degree (by blood or law) or be stepchildren of the insured.

Does not authorize any practices prohibited by North Dakota Century Code chapters 26.1-33.4.