Alabama § 19-3A-407 - Insurance Policies and Similar Contracts.
Full text of Alabama Code of Alabama § 19-3A-407 — Insurance Policies and Similar Contracts., with citation guidance and answers to common questions.
§ 19-3A-407. Insurance Policies and Similar Contracts.
(a) Except as otherwise provided in subsection (b), a fiduciary shall allocate to principal the proceeds of a life insurance policy or other contract in which the trust or its fiduciary is named as beneficiary, including a contract that insures the trust or its fiduciary against loss for damage to, destruction of, or loss of title to a trust asset. The fiduciary shall allocate dividends on an insurance policy to income if the premiums on the policy are paid from income, and to principal if the premiums are paid from principal.
(b) A fiduciary shall allocate to income proceeds of a contract that insures the fiduciary against loss of occupancy or other use by an income beneficiary, loss of income, or, subject to Section 19-3A-403, loss of profits from a business.
(c) This section does not apply to a contract to which Section 19-3A-409 applies.
Source: official Alabama text · Last verified 2026-08-27
Frequently Asked Questions About Alabama § 19-3A-407
What does Code of Alabama § 19-3A-407 cover?
Section 19-3A-407 ("Insurance Policies and Similar Contracts.") is part of the Code of Alabama, the codified statutory law of Alabama. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite Alabama § 19-3A-407?
A common citation format is "Code of Alabama § 19-3A-407" (Alabama). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of Alabama law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the Alabama official source linked on this page or consult a licensed Alabama attorney.
How does Alabama § 19-3A-407 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Alabama can advise on how this section applies to you. Contact your state or local bar association for a referral.
Sources & Verification
Not legal advice. Verify against the official source and consult a licensed attorney in Alabama.