N.Y. Est. Powers & Trusts Law § 11-a-4.7

§ 11-A-4.7 Insurance policies and similar contracts\n (a) Except as otherwise provided in paragraph (b), a trustee shall\nallocate to principal the proceeds of a life insurance policy or other\ncontract in which the trust or its trustee is named as beneficiary,\nincluding a contract that insures the trust or its trustee against loss\nfor damage to, destruction of, or loss of title to a trust asset. The\ntrustee shall allocate dividends on an insurance policy to income if the\npremiums on the policy are paid from income, and to principal if the\npremiums are paid from principal.\n (b) A trustee shall allocate to income proceeds of a contract that\ninsures the trustee against loss of occupancy or other use by an income\nbeneficiary, loss of income, or, subject to 11-A-4.3, loss of profits\nfrom a business.\n (c) This section does not apply to a contract to which 11-A-4.9\napplies.\n