IC38 GENERAL INSURANCE AGENT EXAM - Study Notes
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- Subrogation: It is the process an insurance company uses to recover claim amounts paid to a policy holder from a negligent third party.
- Subrogation can also be defined as surrender of rights by the insured to an insurance company that has paid a claim against the third party.
- Subrogation Principle -
Watch video - Contribution - Applicable to only non-life insurance. one cannot gain more from insurance than one has lost through the peril. If the same property is insured with more than one insurance company, the compensation paid by all the insurers together cannot
- Conditions for insuring risk - (1) A sufficiently large number of homogenous [similar] exposure units (2) Loss produced by the risk must be definite and measurable
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