Which clause or concept in insurance law provides that when an insurer indemnifies the insured for loss

Question

Question: Which clause or concept in insurance law provides that when an insurer indemnifies the insured for loss, the insurance company has the right of recovery from a negligent third party?

Options:

1.  Mortgagee clause
2.  Proof of loss
3.  Ipsa res loquitur
4.  Estoppel
5.  Subrogation

Answer 1

5. Subrogation

Subrogation is a clause/concept in insurance law which provides that when an insurer indemnifies the insured for loss, the insurance company has the right of recovery from a negligent third party.