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 under which Tom's insurance company could sue George for his negligence is subrogation. This allows the insurance company to step into the shoes of the insured person (Tom) and seek compensation for damages caused by a third party (George) who was responsible for the loss.

Tom Visits George at His Ranch