2023 · Q31
The principle of subrogation in insurance allows
General Accounting Principles, Auditing and InsuranceInsurance
- Ainvestment of policy amount
- Brefund for insured and insured's insurance company
- Cauto-renewal of policy
- Dindemnification of the insured
Explanation
The principle of subrogation allows the insurer, after indemnifying the insured, to step into the insured's shoes and recover the loss from the third party at fault, so the insured cannot collect twice. That is a right of recovery for the insurance company, not the indemnification itself described in option D, which is the separate principle subrogation supports. Options A and C are unrelated to insurance law. Hence B.