2006 New York Code - Insurance And Proceeds.

 
  Section 2-A-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.