Which of the Following Is Not True Regarding the Doctrine

question 16

Multiple Choice

Which of the following is not true regarding the doctrine of subrogation in insurance law?

• A)The insurer,when taking legal action against the party at fault,must sue in its own name.
• B)When the insured has received a full payout for a claim the insurer can retain any money received in excess of the claim.
• C)The insurer acquires all legal rights that an insured has in regard to a claim,including the right to sue the party at fault.
• D)If the insured releases the party at fault from liability,the insurer is probably also released from liability.

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Definitions:

Bankruptcy Petition

A formal request filed by an individual or business entity declaring inability to pay outstanding debts, seeking relief through bankruptcy court.

Stale Check

A check that is more than 90 days past the date on its face; banks do not owe a duty to their customers to pay any such checks more than six months past the dates on their face.

Good Faith

Good faith refers to an honest intention to act without taking an unfair advantage over another party, often emphasized in contractual agreements and negotiations.

Six Months

A period of time equivalent to half a year or approximately 182 to 183 days.