(a) 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) 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) Notwithstanding a lessee's insurable interest under (a) - (b) of this section, 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) This section does not impair an insurable interest recognized under another statute or rule of law.
(e) 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.
Section: Previous 45.12.208 45.12.209 45.12.210 45.12.211 45.12.212 45.12.213 45.12.214 45.12.215 45.12.216 45.12.217 45.12.218 45.12.219 45.12.220 45.12.221 NextLast modified: November 15, 2016