8.2A-218 - A-218. Insurance and proceeds. - Virginia Statutes

§ 8.2A-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 of the lessor'sidentification of the goods, the lessor, until default or insolvency ornotification to the lessee that identification is final, may substitute othergoods for those identified.

(3) Notwithstanding a lessee's insurable interest under subsections (1) and(2) of this section, the lessor retains an insurable interest until an optionto buy has been exercised by the lessee and risk of loss has passed to thelessee.

(4) Nothing in this section impairs any insurable interest recognized underany other statute or rule of law.

(5) The parties by agreement may determine that one or more parties have anobligation to obtain and pay for insurance covering the goods and byagreement may determine the beneficiary of the proceeds of the insurance.

(1991, c. 536.)