Commerce WAEC

Under the principle of subrogation, the insurer has the right to?

A. abrogate the contract
B. re-insure the property
C. take over any legal rights of the insured
D. take over all the liabilities of the insured

Correct Answer: Option C

C. take over any legal rights of the insured

Explanation

In simple words, the Subrogation Principle in Insurance means; when the insurer (insurance company) pays full compensation for any insured loss (of insured property), the insurer (insurance company) holds the legal right (claim) of the insured property.

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