Question

How does subrogation prevent the insured from collecting more than the loss?

a.

By reducing the amount paid by the insurer to the insured.

b.

By preventing the insured from making a claim.

c.

By allowing the insured to collect from both the insurer and the third party.

d.

By shifting the insured's rights to the insurer, limiting the amount the insured can collect from the third party.

Answer: (d).By shifting the insured's rights to the insurer, limiting the amount the insured can collect from the third party. Explanation:Subrogation shifts the insured's rights to the insurer, limiting the amount the insured can collect from a third party.

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Q. How does subrogation prevent the insured from collecting more than the loss?

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