---
title: O.C.G.A. § 53-12-423. Insurance policies and similar contracts.
collection: code
id: 53-12-423
cite_as: O.C.G.A. § 53-12-423 (2025)
canonical_url: https://georgiacommons.org/code/53-12-423
md_url: https://georgiacommons.org/code/53-12-423.md
text_url: https://georgiacommons.org/code/53-12-423/text
source_url: https://www.legis.ga.gov/api/document/docs/default-source/joint-features-document-library/t52-t53-(v40)-2021-pdf.pdf?sfvrsn=d23ba203_0#page=948
date: 2025
status: active
corpus_version: 2025-supplement-89aa39ab3c68
license: CC0-1.0
publisher: Georgia Commons, an independent project of Georgia Civic Data. Not the State of Georgia. Not legal advice.
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version: the only printed version
in_force: true
current_through: Including Acts of the 2025 Regular Session of the General Assembly
heading_path: WILLS, TRUSTS, AND ADMINISTRATION OF ESTATES / TRUSTS / GEORGIA PRINCIPAL AND INCOME ACT / ALLOCATION OF RECEIPTS DURING ADMINISTRATION OF TRUST / Receipts Not Normally Apportioned
---

# O.C.G.A. § 53-12-423. Insurance policies and similar contracts.

(a) Except as otherwise provided in subsection (b) of this Code section, a trustee shall allocate to principal the proceeds of a life insurance policy or other contract in which the trust or its trustee is named as beneficiary, including a contract that insures the trust or its trustee against loss for damage to, destruction of, or loss of title to a trust asset. The trustee 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 trustee shall allocate to income proceeds of a contract that insures the trustee against loss of occupancy or other use by an income beneficiary, loss of income, or, subject to Code Section 53-12-412, loss of profits from a business.

(c) This Code section shall not apply to a contract to which Code Section 53-12-425 applies.

## History

Code 1981, § 53-12-423, enacted by Ga. L. 2010, p. 579, § 1/SB 131.