Good Food Corporation buys from Home Farms,Inc.,a rice crop that Home Farms plans to plant and harvest during the next growing season.Good Food plans to sell the rice to Interstate Grocery Stores.After the rice is planted,but before it is harvested,an insurable interest in the rice ex-ists in

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An insurable interest exists when a party stands to suffer a financial loss if an insured event (such as the crop failing) occurs. In this case, Good Food and Home Farms have an insurable interest in the rice since they have already invested resources in the crop's planting and maintenance. Interstate Grocery does not have an insurable interest because they have yet to take ownership of the rice and have not invested in its production. Therefore, the insurable interest exists in Good Food and Home Farms, but not Interstate Grocery.

Good Food Corporation Buys from Home Farms,Inc