The forfeiture rule provides the right of the insurer to recover the amount paid on a claim from a third party that caused the loss.

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The forfeiture rule generally refers to the principle that prevents a beneficiary from receiving benefits from a policy (such as life insurance) if they are responsible for the death of the insured. The right of an insurer to recover the amount paid on a claim from a third party that caused the loss is known as subrogation, not the forfeiture rule.

The Forfeiture Rule Provides the Right of the Insurer to Recover