Which of the Following Statements About Subrogation Is NOT Correct

question 14

Multiple Choice

Which of the following statements about subrogation is NOT correct?

• A)Subrogation only applies to contracts of indemnity.
• B)For subrogation to apply it must be agreed to by the parties as a term of the contract.
• C)Subrogation gives the insurer all the rights of the insured against a third party who caused the loss.
• D)Subrogation applies only after the insurer has paid the insured for their loss.

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Definitions:

Registration Process

The procedure of officially recording something or someone's details on an official list.

Imprisonment

The act of confining someone in a prison or similar facility as punishment for committing a crime.

Common Enterprise

A joint venture or project where parties work together towards a common goal, sharing profits and risks.

Civil Suit

A legal action by one party against another in a civil court, typically involving disputes over rights, contracts, or damages, as opposed to criminal matters.