The Vermont Statutes Online
The Statutes below include the actions of the 2025 session of the General Assembly.
NOTE: The Vermont Statutes Online is an unofficial copy of the Vermont Statutes Annotated that is provided as a convenience.
(Cite as: 9A V.S.A. § 2A-218)
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§ 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) 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.
(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. (Added 1993, No. 158 (Adj. Sess.), § 10, eff. Jan. 1, 1995.)