Vermont § 218 - § 2A—218.

§ 218. § 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 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) 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) 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. (Added 1993, No. 158 (Adj. Sess.), § 10, eff. Jan. 1, 1995.)