Oklahoma § 60-1601.11 - Insurable interest of trustee

§ 60-1601.11. Insurable interest of trustee

A. In this section, "settlor" means a person that executes a

trust instrument. The term includes a person for which a fiduciary

or agent is acting.

B. A trustee of a trust has an insurable interest in the life

of an individual insured under a life insurance policy that is owned

by the trustee of the trust acting in a fiduciary capacity or that

designates the trust itself as the owner if, on the date the policy

is issued:

1. The insured is:

a.

a settlor of the trust, or

b.

an individual in whom a settlor of the trust has, or

would have had if living at the time the policy was

issued, an insurable interest; and

2. The life insurance proceeds are primarily for the benefit of

one or more trust beneficiaries that have:

a.

an insurable interest in the life of the insured, or

b.

a substantial interest engendered by love and

affection in the continuation of the life of the

insured and, if not already included under

subparagraph a of this paragraph, who are:

(1) related within the third degree or closer, as

measured by the civil law system of determining

degrees of relation, either by blood or law, to

the insured, or

(2) stepchildren of the insured.

The following table identifies the relatives of an insured

within three degrees of lineal and collateral consanguinity using

the civil law method, with each row representing a generation.

GreatGrandparents

(3)

Grandparents

(2)

Oklahoma Statutes - Title 60. Property

INSURED

Children

(1)

Parents

(1)

Sisters and

Brothers

(2)

Nieces and

Nephews

(3)

Aunts and Uncles

(3)

Grandchildren

(2)

GreatGrandchildren

(3)

ARTICLE 2

JUDICIAL PROCEEDINGS

Added by Laws 2025, c. 254, § 11, eff. Nov. 1, 2025.