Iowa Code

Iowa Code § 554.2501 (2026)

Insurable interest in goods — manner of identification of goods

✓ current as of July 2026

Find cases: SyfertCases citing this section IA-LEGlegis.iowa.gov JustiaTitle on Justia CornellLII Search CasesGoogle Scholar

1. The buyer obtains a special property and an insurable interest in goods by identification of existing goods as goods to which the contract refers even though the goods so identified are nonconforming and the buyer has an option to return or reject them. Such identification can be made at any time and in any manner explicitly agreed to by the parties. In the absence of explicit agreement identification occurs

a. when the contract is made if it is for the sale of goods already existing and identified;

b. if the contract is for the sale of future goods other than those described in paragraph “c”, when goods are shipped, marked or otherwise designated by the seller as goods to which the contract refers;

c. when the crops are planted or otherwise become growing crops or the young are conceived if the contract is for the sale of unborn young to be born within twelve months after contracting or for the sale of crops to be harvested within twelve months or the next normal harvest season after contracting whichever is longer.

2. The seller retains an insurable interest in goods so long as title to or any security interest in the goods remains in the seller and where the identification is by the seller alone the seller may until default or insolvency or notification to the buyer that the identification is final substitute other goods for those identified.

3. Nothing in this section impairs any insurable interest recognized under any other statute or rule of law. [C24, 27, 31, 35, 39, §9946, 9948; C46, 50, 54, 58, 62, §554.18, 554.20; C66, 71, 73, 75, 77, 79, 81, §554.2501] Referred to in §554.2103, 554.2401, 554.2502 \n

Notes of Decisions

Cited in 3 cases, 1970–1994 · leading case: Shinrone, Inc. v. Tasco, Inc., 283 N.W.2d 280 (Iowa 1979).

Sort: Relevance Newest Treatment

Shinrone, Inc. v. Tasco, Inc., 283 N.W.2d 280 (Iowa 1979). “See § 554.2501(l)(b). See generally Bonebrake v.”

Herington Livestock Auction Co. v. Verschoor, 179 N.W.2d 491 (Iowa 1970). · cites it 2× “Title to goods cannot pass under a contract for sale prior to their identification to the contract (section 554.2501), and unless otherwise explicitly agreed the buyer acquires by their identification a special property as limited by this Chapter.”

Prod. Credit Ass'n of the Midlands v. Farm & Town Indus., Inc., 518 N.W.2d 339 (Iowa 1994). · cites it 2× “Supp. 186, 190 (S.D.Tex.1987). Further, there is no language in the contracts identifying the corn to be sold or even describing the land upon which the crops are growing.”

— Iowa Code § 554.2501(l)(b) — 1 case

Shinrone, Inc. v. Tasco, Inc., 283 N.W.2d 280 (Iowa 1979). “See § 554.2501(l)(b). See generally Bonebrake v.”

Annotations are extracted automatically from the opinions in the Syfert caselaw corpus and ranked by authority, recency, and treatment. Dots show Syfertize treatment of the citing case itself.