400.2A-218. Insurance and proceeds. - Missouri Statutes

Insurance and proceeds.

400.2A-218. (1) A lessee obtains an insurable interestwhen existing goods are identified to the lease contract eventhough the goods identified are nonconforming and the lessee hasan option to reject them.

(2) If a lessee has an insurable interest only by reason ofthe lessor's identification of the goods, the lessor, untildefault or insolvency or notification to the lessee thatidentification is final, may substitute other goods for thoseidentified.

(3) Notwithstanding a lessee's insurable interest undersubsections (1) and (2), the lessor retains an insurable interestuntil an option to buy has been exercised by the lessee and riskof loss has passed to the 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 insurancecovering the goods and by agreement may determine the beneficiaryof the proceeds of the insurance.

(L. 1992 S.B. 448)