A seller's insurable interest in goods always terminates with the passage of the title to the buyer.

Question

Quizplus · Accepted Answer

A seller's insurable interest in goods may continue even after the title has passed to the buyer if the seller retains a security interest in the goods, such as through a retention of title clause or a security agreement. Additionally, the seller may have a contractual obligation with the buyer to insure the goods for a certain period of time after delivery.

A Seller's Insurable Interest in Goods Always Terminates with the Passage