Question

By entering into an insurance contract, a policyholder transfers the right of legal action against a responsible third party their insurance company, this process is called

A) Subrogation
B) Arbitration
C) Indemnification
D) Mediation

Answer 1

By entering into an insurance contract, a policyholder transfers the right of legal action against a responsible third party to their insurance company. This process is called Subrogation.

Step-by-step explanation:

By entering into an insurance contract, a policyholder transfers the right of legal action against a responsible third party to their insurance company. This process is called Subrogation.