QuestionJuly 3, 2025

Question 1 of 3 If an insurance company under a PAP, makes a payment under the policy, and theh person for whom the payments were made has a right to recover damages from another source, the insurance company shall be substituted to that right. This is called __ duplication of coverage 2. subrogation 3. contractual substitution 4. substitution provision

Question 1 of 3 If an insurance company under a PAP, makes a payment under the policy, and theh person for whom the payments were made has a right to recover damages from another source, the insurance company shall be substituted to that right. This is called __ duplication of coverage 2. subrogation 3. contractual substitution 4. substitution provision
Question 1 of 3
If an insurance company under a PAP, makes a payment under the policy, and theh
person for whom the payments were made has a right to recover damages from
another source, the insurance company shall be substituted to that right. This is called
__
duplication of coverage
2. subrogation
3. contractual substitution
4. substitution provision

Solution
4.3(228 votes)

Answer

2. subrogation Explanation The scenario describes a situation where an insurance company can pursue recovery from a third party after compensating the insured. This process is known as subrogation, allowing the insurer to step into the shoes of the insured to recover costs.

Explanation

The scenario describes a situation where an insurance company can pursue recovery from a third party after compensating the insured. This process is known as subrogation, allowing the insurer to step into the shoes of the insured to recover costs.
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