In this process, the insured is required to transfer to the insurer any rights to recovery available from a third party.The transfer is made only to the extent of payment made by the insurer.Identify this process.
A)Demutualization
B)Gentrification
C)Subrogation
D)Redlining
E)Blockbusting

Question

Quizplus · Accepted Answer

Subrogation is the process where an insurance company, after paying a loss to the insured, acquires the insured's right to recover the amount from a third party responsible for the loss. This ensures that the insured does not get compensated twice for the same loss and helps in keeping insurance premiums lower by allowing the insurer to recover some of the costs.

In This Process, the Insured Is Required to Transfer to the Insurer