A&H Policy ProvisionsQuestion 633 of 716
The main purpose of subrogation is to:
a.Reduce the insurer's underwriting duties
b.Prevent the insured from being paid twice for the same loss and hold the at-fault party responsible
c.Extend the policy's grace period so the insured has additional time to pursue the responsible third party
d.Reward the insured for filing a claim
Explanation
Subrogation stops double recovery and shifts the cost to the party that caused the loss. It is unrelated to rewarding the insured, underwriting, or grace periods.
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Related questions on this topic
- The coordination of benefits (COB) provision in group health coverage is designed to:
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Reviewed by John Zihao Zhang — California-Licensed Life Insurance Agent (CA Dept. of Insurance License #4396095 — verify)