All of the Following Statements About Subrogation Are True EXCEPT

question 44

Multiple Choice

All of the following statements about subrogation are true EXCEPT

• A)The general rule allows the insurer to recover up to the amount paid to its insured under the policy.
• B)Subrogation does not apply in life insurance.
• C)Interfering with the insurer's subrogation rights can jeopardize indemnification of the insured.
• D)The insurer reserves the right to subrogate against its own insureds.

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Definitions:

Property Taxes

Taxes levied by local governments based on the assessed value of property, including land and buildings owned.

Contribution Margin

The amount remaining from sales revenue after variable expenses have been deducted, indicating how much contributes to covering the fixed costs.

Break-even Sales

The amount of revenue needed to cover both fixed and variable costs, resulting in no profit or loss.

Variable Cost

Costs that change in proportion to the level of goods or services produced, such as materials and labor directly involved in production.