Which of the Following Statements About Subrogation Is Not Correct?
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.
The doctrine of subrogation:
A) Is limited in its application by the Insurance Contracts Act 1984 (Cth).
B) Continues without restriction.
C) Was abolished by the Insurance Contracts Act 1984 (Cth).
D) Was overruled by the High Court.
Insurable interest means that the insured must suffer a pecuniary or financial loss.
Contracts of insurance are contracts of utmost good faith.