Ace the West Virginia Adjusters Exam 2025 – Claim Your Success This Year!

Question: 1 / 400

What does the term "subrogation" refer to?

The process of re-establishing lost property

The determination of claim validity

The process by which an insurer seeks recovery from a third party

Subrogation is a crucial concept in the insurance industry, where an insurer, after having paid a claim to its insured, seeks to recover the amount of that claim from a third party who is responsible for the loss. It occurs when the insurer “steps into the shoes” of the insured, gaining the legal right to pursue recovery from another party, thereby preventing the insured from receiving a double benefit. This process helps keep insurance premiums lower by allowing insurers to recover costs.

The concept is integral to risk management and loss control within the insurance framework, as it encourages responsible behavior among third parties and holds them financially accountable for their actions. Understanding subrogation is important for adjusters, since it influences how claims are processed and what recovery options might be pursued.

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The assessment of total loss value

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