Which of the following statements about subrogation is true?

Question

Quizplus · Accepted Answer

Subrogation helps to hold down the cost of insurance by allowing the insurer to recover the costs of the claim from the responsible party, reducing the overall cost of the claim and potentially resulting in lower premiums for policyholders. Adverse selection is not related to subrogation. Subrogation does not violate the principle of indemnity, as it allows the insurer to be fully indemnified for the losses they have covered. Subrogation does not permit a party who caused a loss to avoid responsibility for the loss as they can still be held liable for the damages incurred.

Which of the Following Statements About Subrogation Is True