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WAEC Commerce 2000 Question 31

Question 31

Insurance

When an insurance company indemnifies the insured and takes over his rights, this is known as

  1. A.abandonment
  2. B.subrogation
  3. C.proximate cause
  4. D.contribution
Show the answer and explanation

Answer: B (subrogation)

Explanation

After paying a claim the insurer steps into the insured's shoes and takes over his rights: subrogation.