The principle of "subrogation" in insurance refers to:
AThe insured's right to choose any repair shopCorrect AnswerIncorrect Answer
BThe insurer's right to recover losses from a third party.Correct AnswerIncorrect Answer
CThe obligation of the insured to mitigate lossesCorrect AnswerIncorrect Answer
DThe duty of the insurer to settle claims promptlyCorrect AnswerIncorrect Answer
ENone of the aboveCorrect AnswerIncorrect Answer
Solution
Subrogation is the right of the insurer, after paying a claim to the insured, to step into the shoes of the insured and pursue legal action against a third party who may be legally liable for the loss.