Question

Subrogation means the substitution of one person in place of another.
A. True
B. False

Answer 1

Subrogation is true, referring to the process where an insurance company takes on the legal rights of the insured after paying out a claim to pursue recovery from any third parties responsible for the loss.

Step-by-step explanation:

Subrogation does indeed mean the substitution of one person in place of another, so the correct answer to the student's question is A. True.

In the context of insurance, subrogation refers to the process where an insurance company, after paying out a claim, 'steps into the shoes' of the insured and acquires their rights to pursue any third party responsible for the loss. This substitution allows the insurer to attempt to recover amounts paid from the responsible party.