{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/8.2A-218.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/8.2A-218.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/8.2A-218.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/8.2A-218.html"}],"law_id":83259,"edition_id":1,"section_id":83259,"structure_id":12737,"section_number":"8.2A-218","catch_line":"Insurance and proceeds","history":"1991, c. 536.","full_text":"1\n\nA 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\n\nIf 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\n\nNotwithstanding 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\n\nNothing in this section impairs any insurable interest recognized under any other statute or rule of law.5\n\nThe 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.","order_by":null,"text":{"0":{"id":298296,"text":"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.","type":"section","prefixes":["1"],"prefix":"1","entire_prefix":"1","prefix_anchor":"1","level":1,"next_prefix":"2"},"1":{"id":298297,"text":"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.","type":"section","prefixes":["2"],"prefix":"2","entire_prefix":"2","prefix_anchor":"2","level":1,"prior_prefix":"1","next_prefix":"3"},"2":{"id":298298,"text":"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.","type":"section","prefixes":["3"],"prefix":"3","entire_prefix":"3","prefix_anchor":"3","level":1,"prior_prefix":"2","next_prefix":"4"},"3":{"id":298299,"text":"Nothing in this section impairs any insurable interest recognized under any other statute or rule of law.","type":"section","prefixes":["4"],"prefix":"4","entire_prefix":"4","prefix_anchor":"4","level":1,"prior_prefix":"3","next_prefix":"5"},"4":{"id":298300,"text":"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.","type":"section","prefixes":["5"],"prefix":"5","entire_prefix":"5","prefix_anchor":"5","level":1,"prior_prefix":"4"}},"ancestry":[{"id":12737,"edition_id":1,"name":"Formation and Construction of Lease Contract","identifier":"2","label":"part","depth":2,"order_by":1,"parent_id":12736,"metadata":{},"date_created":"2026-06-26 03:43:50","date_modified":"2026-06-26 03:43:50","permalink":{"id":282407,"object_type":"structure","relational_id":12737,"identifier":"2","token":"8.2A\/2","url":"\/8.2A\/2\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12736,"edition_id":1,"name":"Commercial Code \u2014 Leases","identifier":"8.2A","label":"title","depth":1,"order_by":1,"parent_id":null,"metadata":{},"date_created":"2026-06-26 03:43:50","date_modified":"2026-06-26 03:43:50","permalink":{"id":282367,"object_type":"structure","relational_id":12736,"identifier":"8.2A","token":"8.2A","url":"\/8.2A\/","edition_id":1,"permalink":0,"preferred":1}}],"structure_contents":[{"id":71755,"structure_id":12737,"section_number":"8.2A-201","catch_line":"Statute of frauds","url":"\/8.2A-201\/","token":"8.2A\/2\/8.2A-201","metadata":false},{"id":57011,"structure_id":12737,"section_number":"8.2A-202","catch_line":"Final expression: parol or extrinsic evidence","url":"\/8.2A-202\/","token":"8.2A\/2\/8.2A-202","metadata":false},{"id":84673,"structure_id":12737,"section_number":"8.2A-203","catch_line":"Seals inoperative","url":"\/8.2A-203\/","token":"8.2A\/2\/8.2A-203","metadata":false},{"id":53946,"structure_id":12737,"section_number":"8.2A-204","catch_line":"Formation in general","url":"\/8.2A-204\/","token":"8.2A\/2\/8.2A-204","metadata":false},{"id":81740,"structure_id":12737,"section_number":"8.2A-205","catch_line":"Firm offers","url":"\/8.2A-205\/","token":"8.2A\/2\/8.2A-205","metadata":false},{"id":84135,"structure_id":12737,"section_number":"8.2A-206","catch_line":"Offer and acceptance in formation of lease contract","url":"\/8.2A-206\/","token":"8.2A\/2\/8.2A-206","metadata":false},{"id":77350,"structure_id":12737,"section_number":"8.2A-207","catch_line":"Repealed","url":"\/8.2A-207\/","token":"8.2A\/2\/8.2A-207","metadata":false},{"id":58420,"structure_id":12737,"section_number":"8.2A-208","catch_line":"Modification, rescission, and waiver","url":"\/8.2A-208\/","token":"8.2A\/2\/8.2A-208","metadata":false},{"id":68509,"structure_id":12737,"section_number":"8.2A-209","catch_line":"Lessee under finance lease as beneficiary of supply contract","url":"\/8.2A-209\/","token":"8.2A\/2\/8.2A-209","metadata":false},{"id":87434,"structure_id":12737,"section_number":"8.2A-210","catch_line":"Express warranties","url":"\/8.2A-210\/","token":"8.2A\/2\/8.2A-210","metadata":false},{"id":63414,"structure_id":12737,"section_number":"8.2A-211","catch_line":"Warranties against interference and against infringement; lessee's obligation against infringement","url":"\/8.2A-211\/","token":"8.2A\/2\/8.2A-211","metadata":false},{"id":59329,"structure_id":12737,"section_number":"8.2A-212","catch_line":"Implied warranty of merchantability","url":"\/8.2A-212\/","token":"8.2A\/2\/8.2A-212","metadata":false},{"id":56702,"structure_id":12737,"section_number":"8.2A-213","catch_line":"Implied warranty of fitness for particular purpose","url":"\/8.2A-213\/","token":"8.2A\/2\/8.2A-213","metadata":false},{"id":86933,"structure_id":12737,"section_number":"8.2A-214","catch_line":"Exclusion or modification of warranties","url":"\/8.2A-214\/","token":"8.2A\/2\/8.2A-214","metadata":false},{"id":76581,"structure_id":12737,"section_number":"8.2A-215","catch_line":"Cumulation and conflict of warranties express or implied","url":"\/8.2A-215\/","token":"8.2A\/2\/8.2A-215","metadata":false},{"id":60702,"structure_id":12737,"section_number":"8.2A-216","catch_line":"Third-party beneficiaries of express and implied warranties","url":"\/8.2A-216\/","token":"8.2A\/2\/8.2A-216","metadata":false},{"id":86152,"structure_id":12737,"section_number":"8.2A-217","catch_line":"Identification","url":"\/8.2A-217\/","token":"8.2A\/2\/8.2A-217","metadata":false},{"id":83259,"structure_id":12737,"section_number":"8.2A-218","catch_line":"Insurance and proceeds","url":"\/8.2A-218\/","token":"8.2A\/2\/8.2A-218","metadata":false},{"id":55940,"structure_id":12737,"section_number":"8.2A-219","catch_line":"Risk of loss","url":"\/8.2A-219\/","token":"8.2A\/2\/8.2A-219","metadata":false},{"id":65496,"structure_id":12737,"section_number":"8.2A-220","catch_line":"Effect of default on risk of loss","url":"\/8.2A-220\/","token":"8.2A\/2\/8.2A-220","metadata":false},{"id":80194,"structure_id":12737,"section_number":"8.2A-221","catch_line":"Casualty to identified goods","url":"\/8.2A-221\/","token":"8.2A\/2\/8.2A-221","metadata":false}],"previous_section":{"id":86152,"structure_id":12737,"section_number":"8.2A-217","catch_line":"Identification","url":"\/8.2A-217\/","token":"8.2A\/2\/8.2A-217","metadata":false},"next_section":{"id":55940,"structure_id":12737,"section_number":"8.2A-219","catch_line":"Risk of loss","url":"\/8.2A-219\/","token":"8.2A\/2\/8.2A-219","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/8.2A-218\/","history_text":"

This law was first created in 1991. The record of its establishment is cataloged in chapter 536 of that year\u2019s edition of \u201cActs of Assembly,\u201d the annual state publication listing all changes made to the Code of Virginia in that year. Unfortunately, the 1991 \u201cActs\u201d aren\u2019t available online.<\/p>","references":false,"refers_to":false,"permalink":{"id":282477,"object_type":"law","relational_id":83259,"identifier":"8.2A-218","token":"8.2A\/2\/8.2A-218","url":"\/8.2A-218\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/8.2A-218\/","token":"8.2A\/2\/8.2A-218","dublin_core":{"Title":"Insurance and proceeds","Type":"Text","Format":"text\/html","Identifier":"\u00a7 8.2A-218","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

1.<\/span> A lessee obtains an insurable interest when existing goods are identified to the lease contract<\/span> even though the goods identified are nonconforming and the lessee has an option to reject them. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> If a lessee has an insurable interest only by reason of the lessor’s identification of the goods, the lessor, until default<\/span> or insolvency or notification to the lessee that identification is final, may substitute other goods for those identified. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> 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. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> Nothing in this section impairs any insurable interest recognized under any other statute<\/span> or rule of law<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

5.<\/span> 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. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nINSURANCE AND PROCEEDS (\u00a7 8.2A-218)\n\n1. A lessee obtains an insurable interest when existing goods are identified to\nthe lease contract even though the goods identified are nonconforming and the\nlessee has an option to reject them.\n\n2. If a lessee has an insurable interest only by reason of the lessor’s\nidentification of the goods, the lessor, until default or insolvency or\nnotification to the lessee that identification is final, may substitute other\ngoods for those identified.\n\n3. Notwithstanding a lessee’s insurable interest under subsections (1) and\n(2) of this section, the lessor retains an insurable interest until an option to\nbuy has been exercised by the lessee and risk of loss has passed to the lessee.\n\n4. Nothing in this section impairs any insurable interest recognized under any\nother statute or rule of law.\n\n5. The parties by agreement may determine that one or more parties have an\nobligation to obtain and pay for insurance covering the goods and by agreement\nmay determine the beneficiary of the proceeds of the insurance.\n\nHISTORY: 1991, c. 536.","edition":{"id":1,"name":"2025","slug":"2025","date_created":"2026-06-21 22:39:22","date_modified":"2026-06-21 22:39:22","current":1,"order_by":1,"last_import":null}}