Which of the Following Statements About Subrogation Is True

question 5

Multiple Choice

Which of the following statements about subrogation is true?

• A)It is used primarily for losses paid under life insurance policies.
• B)It allows the insurer to sue its own insured who is negligent.
• C)The insured's right to collect benefits may be forfeited if the insured interferes with the insurer's rights after a loss occurs.
• D)The insurer is required to exercise its subrogation rights.

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Definitions:

Critiquing

Critiquing refers to the practice of analyzing and evaluating something critically, often to identify its strengths and weaknesses or to provide constructive feedback.

Laissez-faire

An economic philosophy of free-market capitalism that opposes government intervention.

Reciprocal

involving mutual exchange or sharing between two or more parties.

Authoritarian

Characterizing a system of government or leadership where control is held by a single ruler or small group, often lacking democratic participation or personal freedoms.