2006 Minnesota Statutes

336.2A-218 INSURANCE AND PROCEEDS.
(1) 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.
(2) 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.
(3) Notwithstanding a lessee's insurable interest under subsections (1) and (2), 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.
(4) Nothing in this section impairs any insurable interest recognized under any other statute
or rule of law.
(5) 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.
History: 1989 c 232 art 1 s 2A-218