Subrogation scenario: If insurer B pays to Driver B, who may sue to recover damages?

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Prepare for the Risk Management Temple Exam 2. Study with interactive quizzes, flashcards, and detailed explanations for each question. Boost your readiness and confidence for the exam!

Multiple Choice

Subrogation scenario: If insurer B pays to Driver B, who may sue to recover damages?

Explanation:
Subrogation gives the insurer who paid a claim the right to recover those costs from the party responsible for the loss. When insurer B pays Driver B for damages caused by Driver A, insurer B steps into Driver B’s shoes and can pursue recovery from the at-fault driver (Driver A) or from that driver's insurer (Insurer A). The insured who was paid (Driver B) doesn’t sue to recover in this subrogation process; the insurer does. Therefore, the entity that may sue to recover the damages is either Driver A or Insurer A.

Subrogation gives the insurer who paid a claim the right to recover those costs from the party responsible for the loss. When insurer B pays Driver B for damages caused by Driver A, insurer B steps into Driver B’s shoes and can pursue recovery from the at-fault driver (Driver A) or from that driver's insurer (Insurer A). The insured who was paid (Driver B) doesn’t sue to recover in this subrogation process; the insurer does. Therefore, the entity that may sue to recover the damages is either Driver A or Insurer A.

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