New Jersey § 12a:2-501

§ 12a:2-501.

(1) The buyer obtains a special property and an insurable interest in goods by identification

of existing goods as goods to which the contract refers even though the goods so identified

are non-conforming and he has an option to return or reject them. Such identification can be made at any time and in any manner explicitly agreed

to by the parties. In the absence of explicit agreement identification occurs (a) when the contract is made if it is for the sale of goods already existing and

identified; (b) if the contract is for the sale of future goods other than those described in

paragraph (c), when goods are shipped, marked or otherwise designated by the seller

as goods to which the contract refers; (c) when the crops are planted or otherwise become growing crops or the young are

conceived if the contract is for the sale of unborn young to be born within twelve

months after contracting or for the sale of crops to be harvested within twelve months

or the next normal harvest season after contracting whichever is longer. (2) The seller retains an insurable interest in goods so long as title to or any security

interest in the goods remains in him and where the identification is by the seller

alone he may until default or insolvency or notification to the buyer that the identification

is final substitute other goods for those identified. (3) Nothing in this section impairs any insurable interest recognized under any other

statute or rule of law.