When a surety pays a claim that it is obligated to pay, it automatically acquires the claim and the rights of the creditor; this is known as subrogation.

Name: When a surety pays a claim that it is obligated to pay, it automatically acquires the claim and the rights of the creditor; this is known as subrogation.
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When a surety pays a claim, it steps into the shoes of the creditor and acquires their rights through subrogation.

When a Surety Pays a Claim That It Is Obligated