The right of subrogation allows the insurer to get reimbursed for claims paid.

Question

Quizplus · Accepted Answer

The right of subrogation is a common provision in insurance contracts that allows the insurer to step into the shoes of the insured and claim against a third party who caused the loss or damage. If the insurer pays a claim to the insured, it has the right to recover the amount paid from any responsible third party, up to the limit of the policy. This helps prevent the insured from receiving a windfall, and also helps keep premiums low by preventing duplicate payments for the same loss. Therefore, the statement "the right of subrogation allows the insurer to get reimbursed for claims paid" is true.

The Right of Subrogation Allows the Insurer to Get Reimbursed