Which of the Following Statements About Subrogation Is True

question 52

Multiple Choice

Which of the following statements about subrogation is true?

• A)Subrogation eliminates adverse selection.
• B)Subrogation helps to hold down the cost of insurance.
• C)Subrogation results in violation of the principle of indemnity.
• D)Subrogation permits a party who caused a loss to avoid responsibility for the loss.

---

Definitions:

Price Elastic

The degree to which the quantity demanded of a product changes in response to a change in its price.

Capital

Capital refers to financial assets or the financial value of assets, such as funds held in deposit accounts, as well as the tangible machinery and production equipment used in environments such as factories and other manufacturing facilities.

Labor Substitutable

The concept that one form of labor can replace another in performing specific tasks or jobs, reflecting flexibility in the workforce.

Productivity of Labor

The measure of output per unit of labor input.