Property Insurance FundamentalsPregunta 244 de 474
An insurer pays $80,000 for fire damage a contractor's crew caused. Subrogation means the insurer may:
a.Require the insured to sue the contractor
b.Keep any recovery beyond what it has paid
c.Reduce the payment by the contractor's share
d.Pursue the contractor for what it has paid
Explicación
Subrogation transfers the insured's right of recovery to the insurer once the claim is paid, so the insurer steps into the insured's place and pursues the contractor for the $80,000 it paid out. It does not let the insurer pay less up front because someone else was at fault; the insured is paid first and recovery comes later. Amounts recovered beyond the insurer's outlay are not its to keep.
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