2012 Pennsylvania Consolidated Statutes
Title 13 - COMMERCIAL CODE
Chapter 2A2 - Formation and Construction of Lease Contract
Section 2A218 - Insurance and proceeds

     § 2A218.  Insurance and proceeds.
        (a)  Insurable interest of lessee.--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)  Substitution of goods by lessor.--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)  Duration of insurable interest of lessor.--
     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)  Other insurable interests unimpaired.--Nothing in this
     section impairs any insurable interest recognized under any
     other statute or rule of law.
        (e)  Agreement to determine obligations of parties.--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.