§ 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.
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