Which of the following statements about subrogation is true?

Question

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Subrogation allows the insurer to step into the shoes of its insured and pursue recovery from a third party that caused a loss, enabling the insurer to recoup some or all of the money it paid to the insured for the loss. However, if the insured interferes with the insurer's rights after a loss occurs, such as settling with the third party or releasing them from liability without the insurer's authorization, the insured's right to collect benefits may be forfeited.

Which of the Following Statements About Subrogation Is True