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Question: The purpose of __________ are to hold the negligent person responsible for the loss and prevent the insured from collecting twice for the same loss.

Options:

  1.  subrogation
  2.  causa proxima
  3.  indemnity
  4.  uberrima fides

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1. Subrogation

The purpose of subrogation are to hold the negligent person responsible for the loss and prevent the insured from collecting twice for the same loss.

Subrogation is a term that describes the right reserved by most insurers to legally follow a third party who has caused the loss of insurance to the insured.

This is done with the intention of recovering the amount of the claim paid by the insurer to the one with the loss insurance.

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