2A218 - Insurance and proceeds.

     § 2A218.  Insurance and proceeds.        (a)  Insurable interest of lessee.--A lessee obtains an     insurable interest when existing goods are identified to the     lease contract even though the goods identified are     nonconforming and the lessee has an option to reject them.        (b)  Substitution of goods by lessor.--If a lessee has an     insurable interest only by reason of the lessor's identification     of the goods, the lessor, until default or insolvency or     notification to the lessee that identification is final, may     substitute other goods for those identified.        (c)  Duration of insurable interest of lessor.--     Notwithstanding a lessee's insurable interest under subsections     (a) and (b), the lessor retains an insurable interest until an     option to buy has been exercised by the lessee and risk of loss     has passed to the lessee.        (d)  Other insurable interests unimpaired.--Nothing in this     section impairs any insurable interest recognized under any     other statute or rule of law.        (e)  Agreement to determine obligations of parties.--The     parties by agreement may determine that one or more parties have     an obligation to obtain and pay for insurance covering the goods     and by agreement may determine the beneficiary of the proceeds     of the insurance.