(a) Notwithstanding the provisions of this Article, the duties of a trustee with respect
to acquiring or retaining a contract of insurance upon the life of the settlor, or
the lives of the settlor and the settlor's spouse, do not include a duty (i) to determine
whether any such contract is or remains a proper investment; (ii) to exercise policy
options, including investment options, available under any such contract; or (iii)
to diversify any such contract. A trustee is not liable to the beneficiaries of the trust or to any party for any
loss arising from the absence of those duties upon the trustee.
(b) The trustee of a trust described under subsection (a) of this section established
prior to October 1, 1995, shall notify the settlor in writing that, unless the settlor
provides written notice to the contrary to the trustee within 60 days of the trustee's
notice, the provisions of subsection (a) of this section shall apply to the trust. Subsection (a) of this section shall not apply if, within 60 days of the trustee's
notice, the settlor notifies the trustee that subsection (a) of this section shall
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