When a Surety Pays a Claim That It Is Obligated

question 52

True/False

When a surety pays a claim that it is obligated to pay, it automatically acquires the claim and the rights of the creditor; this is known as subrogation.

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Definitions:

Assets

Assets refer to resources owned by an individual or organization that have economic value and can be converted into cash or used to generate income.

Existing Balance

Refers to the amount currently in an account prior to any new charges, deposits, or withdrawals.

Office Policy

Rules and guidelines established by an organization to regulate procedures and behavior in a workplace.

Balance Due

The amount of money owed to a party that has not yet been paid.