The insurance principle that allows an insurance company to take over the rights of the insured once he has been compensated is?

A. indemnity
B. proximate cause
C. utmost good faith
D. subrogation

Correct Answer:

Option D – subrogation

Explanation

In the event of an insurance claim, “subrogation” refers to the process by which your insurance company collects money from the party at fault (or their insurance company) in order to recover funds you or your insurance company have already paid, including your deductible