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Difficulty: HardOccupational and Specialized Registers

Which specialized terms complete the sentence below correctly?

Answer:In insurance law and risk management, the legal doctrine of 【subrogation】 permits an insurer that has indemnified a policyholder to assume that party's legal rights against responsible third parties, whereas an insurance 【actuary】 evaluates financial risk and computes premium rates using statistical models.

Answer

blank_1: subrogation; blank_2: actuary
In insurance law and financial risk management, 'subrogation' is the technical term for the process whereby an insurer inherits the legal rights of the insured to pursue a claim against the party responsible for the loss. An 'actuary' is the precise occupational title for the statistical professional who models financial risks and computes insurance premium rates.

Step-by-Step Solution

1
Identify the legal term in insurance register for an insurer stepping into a policyholder's legal rights after compensating a loss.
The precise specialized term is 'subrogation'.
Subrogation specifically denotes the substitution of one person or entity in the place of another with respect to a lawful claim or right.
2
Identify the occupational title for a professional who assesses statistical risk and calculates insurance premiums.
The correct register term is 'actuary'.
An actuary applies mathematical, statistical, and financial theory to analyze future financial risks and determine pricing.

Key Concept

Insurance and Actuarial Registers
Estimated Time:1m 30s
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Topics

Occupational and Specialized Registers

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