Asked by Dangerously Loved on Jul 24, 2024
Verified
Which of the following is correct with respect to the principle of subrogation as it relates to insurance law?
A) Subrogation refers to the insured's right to demand payment from the insurance company if the insured-against event takes place.
B) Subrogation refers to the principle that the insured cannot benefit from his own wrongdoing.
C) Subrogation refers to the principle that, if the insured does not take out enough insurance, he will be taken to be responsible for a portion of any loss incurred.
D) Subrogation refers to the principle that, if an insurance company pays out on a policy, they assume all of the rights of the insured against the person causing the loss.
E) Subrogation refers to the practice of the insurance companies taking out their own insurance where the policy involves potentially large losses or high risk.
Subrogation
The legal process by which one party, such as an insurer, assumes another's legal right to collect a debt or damages after having paid for the loss.
Insurance Law
The body of law governing the business of insurance, including the regulation of policies, claims, and the contractual obligations of parties.
- Gain insight into the concepts of insurable interest, subrogation, and how principles of insurance law are applied.
Verified Answer
MD
Mejda DakhlaouiJul 30, 2024
Final Answer :
D
Explanation :
Subrogation allows an insurance company to take on the legal rights of the insured after paying for a loss, enabling the insurer to pursue recovery from the party responsible for the damage.
Learning Objectives
- Gain insight into the concepts of insurable interest, subrogation, and how principles of insurance law are applied.