After a driver damages the insured's fence, the insured signs a paper releasing that driver from all claims and then files with his own insurer. The effect is that:
Explanation
The subrogation condition requires the insured to do nothing after a loss that would prejudice the insurer's right to step into his shoes and recover from the party at fault. Signing a release destroys that right, and the insurer may reduce or deny the claim to the extent it was harmed. A waiver given before any loss can sometimes stand, but a release signed afterward cannot be handed on to the insurer.
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