Spuds Corporation buys from Tater Farm Inc. a potato crop that Tater plans to plant and harvest during the next growing season. Spuds plans to sell the potatoes to Tasty Food Restaurant. After the potatoes are planted, but before they are harvested, an insurable interest in the crop exists in

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Spuds Corporation has an insurable interest because it has bought the crop, expecting to sell it to Tasty Food Restaurant, thus having a financial stake in the crop's successful growth and harvest. Tater Farm Inc. also has an insurable interest as the current owner and grower of the crop. Tasty Food Restaurant does not have an insurable interest at this stage because it has not yet purchased the potatoes and therefore does not have a financial stake in this specific crop's existence or condition.

Spuds Corporation Buys from Tater Farm Inc