1. Proceeds from a lifeinsurance policy whose beneficiary isthe trust or its trustee or a policy that insures the trust or itstrustee against loss for the damage or destruction of, or loss of titleto, a principal asset must be allocated to principal. Dividends received from an insurance policy and the proceeds of any other contract in which the trust or its trustee is named as beneficiary must also be allocated to principal. 2. Insurance proceeds must be allocated to income if they are from a policy that insures the trustee against the loss of occupancy or other use by an income beneficiary, the loss of income, or,subject to section 637.403, the loss of profits from a business. 3. This section does not apply to a contract to which section 637.421 applies.
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