Question 19
InsuranceThe right of an insurance company to stand in place of an insured against a third party, who is liable for the occurrence of a loss, is the principle of
- A.proximate cause
- B.insurable interest
- C.insurance priority
- D.subrogation.
Show the answer and explanation
Answer: D (subrogation.)
Explanation
After paying a claim, the insurer takes over (is subrogated to) the insured's right to recover from whoever caused the loss.