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Difficulty: Very hardOccupational and Specialized Registers

Which specialized technical term from insurance and legal registers correctly completes the passage below?

Answer:When an insurer indemnifies a policyholder for a loss caused by a negligent third party and subsequently steps into the policyholder's legal rights to recover compensation directly from that third party, the insurer is exercising the right of 【subrogation】.

Answer

subrogation
In legal and insurance register, 'subrogation' specifically denotes the legal doctrine by which an insurer, having paid a loss to its insured, steps into the insured's legal rights to pursue recovery from the third party responsible for causing the loss.

Step-by-Step Solution

1
Analyze the operational context in legal and insurance practice where an insurer compensates an insured party and assumes their right to take legal action against a tortfeasor.
Identify the precise legal doctrine that governs the substitution of one creditor or claimant for another.
The scenario describes the transfer of legal rights of recovery from the policyholder to the insurer following indemnification.
2
Select the correct specialized register term matching this exact legal transfer process.
Determine that 'subrogation' is the accurate technical term in insurance law.
'Subrogation' prevents the insured from collecting twice for the same loss and ensures the responsible party remains legally liable.

Key Concept

Occupational and Specialized Registers (Insurance and Legal Law)
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Topics

Occupational and Specialized Registers

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