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JAMB Commerce 2014 Question 19

Question 19

Insurance

The insurance principle that allows an insurance company to take over the rights of the insured once he has been compensated is

  1. A.indemnity.
  2. B.proximate cause.
  3. C.utmost good faith.
  4. D.subrogation.
Show the answer and explanation

Answer: D (subrogation.)

Explanation

After paying the claim, the insurer takes over the insured's rights against anyone liable: subrogation.