What Is the Legal Effect of an Insurer's Decision to Subrogate

question 54

Multiple Choice

What is the legal effect of an insurer's decision to subrogate against a third party wrongdoer?

• A) the insurer is required to defend the insured
• B) the insurer denies coverage to the insured
• C) the insurer steps into the shoes of the insured
• D) the insurer must indemnify the insured

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Definitions:

Acceptance

The act of agreeing to an offer, or the acknowledgment of a deal's terms, making it legally binding.

Rejection

In contract law, the refusal to accept an offer or a breach by the other party, or in the context of goods, refusal because they do not meet specified terms.

Wood Gun Cabinet

A wood gun cabinet is a type of furniture designed for the storage of firearms, usually made from wood and often featuring glass panels for display.

Contract Formed

The point at which parties agree to terms, thereby creating a legally binding agreement.