Spuds Corporation buys from Tater Farms, Inc., a potato crop that Tater plans to plant and harvest during the next growing season. Spuds plans to sell the potatoes to Tasty Foods Restaurants, but they have not yet entered into a contract. After the potatoes are planted, but before they are harvested, an insurable interest in the crop exists in

Question

Quizplus · Accepted Answer

An insurable interest exists in both Spuds and Tater because Spuds has a vested interest in the crop they have purchased, and Tater has an interest as the grower. Tasty does not have an insurable interest as they have not entered into a contract.

Spuds Corporation Buys from Tater Farms, Inc