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Ch. 516 2006 LAWS OF MARYLAND
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2. is in addition to any other insurable interest that may
exist on the life of an individual party to the contract or option.
(6) THE TRUSTEE OF A TRUST HAS AN INSURABLE INTEREST IN THE
LIFE OF AN INDIVIDUAL INSURED UNDER A LIFE INSURANCE POLICY OWNED BY THE
TRUST OR THE TRUSTEE OF A TRUST IF, ON THE DATE ON WHICH THE POLICY IS
ISSUED:
(I) THE INSURED IS:
1. THE GRANTOR OF THE TRUST;
2. AN INDIVIDUAL RELATED CLOSELY BY BLOOD OR LAW TO
THE GRANTOR; OR
3. AN INDIVIDUAL IN WHOM THE GRANTOR OTHERWISE HAS
AN INSURABLE INTEREST; AND
(II) THE LIFE INSURANCE PROCEEDS ARE PRIMARILY FOR THE
BENEFIT OF TRUST BENEFICIARIES HAVING AN INSURABLE INTEREST IN THE LIFE
OF THE INSURED.
(7) A PARTNERSHIP, LIMITED PARTNERSHIP, OR LIMITED LIABILITY
COMPANY HAS AN INSURABLE INTEREST IN THE LIFE OF AN INDIVIDUAL INSURED
UNDER A LIFE INSURANCE POLICY OWNED BY THE PARTNERSHIP, LIMITED
PARTNERSHIP, OR LIMITED LIABILITY COMPANY IF, ON THE DATE ON WHICH THE
POLICY IS ISSUED:
(I) ISSUED. SUBSTANTIALLY ALL OF THE OWNERS OF THE
PARTNERSHIP, LIMITED PARTNERSHIP, OR LIMITED LIABILITY COMPANY ARE:
1. (I) THE INSURED;
2. (II) INDIVIDUALS RELATED CLOSELY BY BLOOD OR LAW
TO THE INSURED; OR
3. (III) INDIVIDUALS PERSONS HAVING AN INSURABLE
INTEREST IN THE LIFE OF THE INSURED; OR.
(II) THE PARTNERSHIP, LIMITED PARTNERSHIP, OR LIMITED
LIABILITY COMPANY OTHERWISE HAS AN INSURABLE INTEREST IN THE LIFE OF THE
INSURED.
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall apply to all
trusts existing before, on, or after June 1, 2006, regardless of the effective date of the
governing instrument under which the trust was created, but only as to life insurance
policies that are in force and for which the insured is alive on or after June 1, 2006.
SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall take effect
June 1, 2006.
Enacted May 26, 2006.
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- 2574 -
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