Wayne sells James a forklift, but retains a security interest in the equipment. Wayne no longer has an insurable interest in the forklift since title has passed to James.

Security Interest

A legal claim or lien on collateral that has been pledged, usually to obtain a loan, that gives the lender a right to repossession if the loan is not repaid as agreed.

Insurable Interest

The requirement that a person stands to suffer a financial loss or certain other kinds of losses if the insured event occurs.

Retains

implies holding onto or keeping in possession, often used in legal and financial contexts to describe holding onto services, rights, or properties.