§ 6A-2.1-218 - Insurance and proceeds.
SECTION 6A-2.1-218
§ 6A-2.1-218 Insurance and proceeds.– (1) A lessee obtains an insurable interest when existing goods are identifiedto the lease contract even though the goods identified are nonconforming andthe lessee has an option to reject them.
(2) If a lessee has an insurable interest only by reason ofthe lessor's identification of the goods, the lessor, until default orinsolvency or notification to the lessee that identification is final, maysubstitute other goods for those identified.
(3) Notwithstanding a lessee's insurable interest undersubsections (1) and (2), the lessor retains an insurable interest until anoption to buy has been exercised by the lessee and risk of loss has passed tothe lessee.
(4) Nothing in this section impairs any insurable interestrecognized under any other statute or rule of law.
(5) The parties by agreement may determine that one or moreparties have an obligation to obtain and pay for insurance covering the goodsand by agreement may determine the beneficiary of the proceeds of the insurance.