Current through Register Vol. 55, No. 1, January 4, 2025
Section 163.5 - General requirements for trust agreements(a) A trust agreement shall be entered into between the beneficiary, the grantor and a trustee.(b) A trust agreement shall be established for the sole benefit of the beneficiary.(c) A trust agreement shall be made subject to and governed by the laws of the state in which the trust is established.(d) A trust agreement may not be subject to any conditions or qualifications outside of the trust agreement.(e) A trust agreement may not be conditioned upon any other agreements or documents, except for the reinsurance agreement for which the trust agreement is established.(f) A trust agreement may not transfer liability from the trustee for the trustee's own negligence, willful misconduct or lack of good faith.(g) A trust agreement shall create a trust account into which the assets shall be deposited.(h) A trust agreement shall prohibit invasion of the trust corpus for the purpose of paying compensation to or reimbursing the expenses of the trustee.(i) A trust agreement shall prohibit the grantor from terminating the trust agreement on the basis of the insolvency of the beneficiary.