(810 ILCS 5/2A-218)
(from Ch. 26, par. 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
(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
(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.
(Source: P.A. 87-493.)