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WAEC Commerce 2017 Question 43

Question 43

Insurance

Under the principle of subrogation, the insurer has the right to

  1. A.abrogate the contract.
  2. B.re-insure the property.
  3. C.take over any legal rights of the insured.
  4. D.take over all the liabilities of the insured.
Show the answer and explanation

Answer: C (take over any legal rights of the insured.)

Explanation

After paying a claim, the insurer takes over the insured's rights, e.g. to sue the person who caused the loss.