Question

All of the following are true of subrogation except:

a. helps the insurer control expenses and premiums

b. it allows the insurer to file suit against the insured

c. it prevents the insured from collecting twice for the same loss

d. it allows the insurer to attempt collection from a third party to reimburse a loss

Answer 1

Subrogation helps the insurer control expenses and premiums by enabling them to recover the amount paid out. It also prevents the insured from collecting twice for the same loss.

Step-by-step explanation:

Subrogation is a process by which an insurance company recovers the amount it paid to cover a loss from a third party responsible for that loss. It helps the insurer control expenses and premiums, as it allows them to recover some or all of the money they paid out. It also prevents the insured from collecting twice for the same loss. However, subrogation does not allow the insurer to file suit against the insured.