§490:2A-218  Insurance and proceeds.  (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 subsections (a) and (b), 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)  Nothing in this section impairs any
insurable interest recognized under any other 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. [L 1991, c 40, pt of §1]