Vermont § 3711 - Charitable life gifts

§ 3711. Charitable life gifts

• (a) A life insurance contract may be entered into in which a person paying the consideration
  for such insurance has no insurable interest in the life of the individual insured,
  provided that a charitable, benevolent, educational, or religious institution or its
  agency or any other organization that qualifies under Section 501(c)(3) of the Internal Revenue Code is irrevocably designated as the owner and beneficiary of the contract. (b) In making such a contract, both the owner and the insured shall make and sign the
  joint application. The person paying the premium shall irrevocably designate a charitable,
  benevolent, educational, or religious institution, or an agency of such an institution
  or any other organization that qualifies under Section 501(c)(3) of the Internal Revenue Code, as the irrevocable owner and beneficiary of such contract. (c) If a prospective insured applies jointly for a life insurance policy that irrevocably
  names a 501(c)(3) organization or nonprofit as owner and beneficiary, then, at the
  time of such joint application, an insurable interest is created for the entity in
  the prospective insured’s life. Before an application may be made for such a policy,
  the insurer shall provide the prospective insured with a written disclosure to remind
  the prospective insured to consider his or her current state of health and to consult
  with a tax advisor or estate planner. (d) Nothing in this section shall prohibit any combination of the applicant, premium payer,
  owner, and beneficiary from being the same person. (e) This section does not alter the insurable interest requirements of any other law. (Added 2003, No. 20, § 1.)