Tom visits George at his ranch.Although a novice on horseback,Tom decides to join George in a morning ride.George recommends that Tom ride an unbroken stallion named Satan.While mounting Satan,Tom is thrown headlong through the windshield of Tom's car.The damage to the car is $2,000 and Tom's own insurance pays him $1,500 ($500 deductible).Under what principle could Tom's insurance company sue George for his negligence?

Question

Quizplus · Accepted Answer

The principle that applies here is subrogation. Tom's insurance company, after paying Tom for the damages caused by George's negligence, could sue George to recover the amount paid to Tom. This is because the insurance company has the right to step into Tom's place and seek reimbursement from the person who caused the damages.

Tom Visits George at His Ranch