Title 11, Chapter 2, Section 501
Insurable interest in goods; manner of identification of goods.
(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
nonconforming 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
(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) of this subsection, 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 12 months after contracting or for
the sale of crops to be harvested within 12 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 Code section impairs any insurable interest
recognized under any other statute or rule of law.