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      Question

      The principle of "subrogation" in insurance refers to:

      A The insured's right to choose any repair shop Correct Answer Incorrect Answer
      B The insurer's right to recover losses from a third party. Correct Answer Incorrect Answer
      C The obligation of the insured to mitigate losses Correct Answer Incorrect Answer
      D The duty of the insurer to settle claims promptly Correct Answer Incorrect Answer
      E None of the above Correct Answer Incorrect 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.

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