William owned a factory that was burned to the ground as a result of Jefferson's negligence.Happily, William had purchased first-party coverage from Clinton Insurance Corp (CIC).Which of the following statements is most likely to be TRUE?

Question

Quizplus · Accepted Answer

CIC, after compensating William for the loss, has the right to sue Jefferson in tort to recover the amount paid to William. This is known as subrogation, where the insurer steps into the shoes of the insured to recover from the third party responsible for the loss.

William Owned a Factory That Was Burned to the Ground