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:

Prisoner's Dilemma

A paradox in decision analysis in which two individuals acting in their own self-interest pursue a course of action that does not result in the ideal outcome.

Nash Equilibrium

A concept in game theory where no player can benefit by changing strategies while the other players' strategies remain unchanged.

Competitor's Pie

A metaphorical representation of the total market share or demand available to all competitors within a market.

Simultaneous Move Game

A type of game theory scenario where all participants choose their actions without knowledge of the others' decisions at the same time.