Arizona Code § 14-10908

Life insurance on settlor; liability of trustee
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14-10908. Life insurance on settlor; liability of trustee
A trustee may acquire or retain a contract of life insurance on the life of the settlor or the settlor's spouse, or both, without liability for a loss arising from the trustee's failure to:
1. Determine whether the contract is or remains a proper investment.
2. Investigate the financial strength of the life insurance company.
3. Exercise nonforfeiture provisions available under the contract.
4. Diversify the contract.

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