Which of the Following Statements About Subrogation Is True

question 39

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 subrogation rights after a loss occurs.
• D)The insurer is required to exercise its subrogation rights.

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Definitions:

Accrued Expense

Expenses that have been incurred but not yet paid or recorded at the end of a reporting period.

Payback Periods

The duration of time it takes to recover the cost of an investment through the investment's cash flows.

Risks

The potential for losing something of value or the chance of an adverse outcome.