---
title: O.C.G.A. § 11-2A-218. Insurance and proceeds.
collection: code
id: 11-2A-218
cite_as: O.C.G.A. § 11-2A-218 (2025)
canonical_url: https://georgiacommons.org/code/11-2A-218
md_url: https://georgiacommons.org/code/11-2A-218.md
text_url: https://georgiacommons.org/code/11-2A-218/text
source_url: https://www.legis.ga.gov/api/document/docs/default-source/joint-features-document-library/t11-(v9)-2022-pdf.pdf?sfvrsn=b5451bbd_0#page=289
date: 2025
status: active
corpus_version: 2025-supplement-89aa39ab3c68
license: CC0-1.0
publisher: Georgia Commons, an independent project of Georgia Civic Data. Not the State of Georgia. Not legal advice.
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version: the only printed version
in_force: true
current_through: Including Acts of the 2025 Regular Session of the General Assembly
heading_path: COMMERCIAL CODE / LEASES / FORMATION AND CONSTRUCTION OF LEASE CONTRACT
---

# O.C.G.A. § 11-2A-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), 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.

## History

Code 1981, § 11-2A-218, enacted by Ga. L. 1993, p. 633, § 1.