Seller agrees to sell and deliver goods to the buyer.The terms were F.O.B.destination.The goods were delivered to the common carrier,but were destroyed in transit.Both parties have insurance policies that will cover the loss,if they have an insurable interest.Which of the following statements best describes this situation?

Question

Quizplus · Accepted Answer

The seller has an insurable interest in the goods until they are delivered to the buyer (A). The buyer had an insurable interest in the goods ever since they were identified to this contract (B). Since the seller has the risk of loss, only the seller will be able to collect insurance proceeds (C).

Seller Agrees to Sell and Deliver Goods to the Buyer