CALA CALA Subrogation and Recovery in Auto Claims

Question 1

What is subrogation in the context of auto insurance claims?

Accepted Answer

The insurer's right to recover paid claim costs from a liable third party

Answer

The process of transferring a vehicle title after a total loss

Answer

A policyholder's right to choose their own repair shop

Answer

The adjustment of a claim based on comparative negligence

Question 2

Which document must an insured typically sign to allow the insurer to pursue subrogation?

Accepted Answer

Subrogation receipt or loan receipt agreement

Answer

Proof of Loss form

Answer

Certificate of Title

Answer

Reservation of Rights letter

Question 3

What is the 'made whole' doctrine in subrogation?

Accepted Answer

The insured must be fully compensated before the insurer can recover its subrogation interest

Answer

The insurer must be fully reimbursed before the insured receives any recovery

Answer

The at-fault party must restore the vehicle to pre-loss condition

Answer

All parties must agree before a subrogation claim can be filed

Question 4

When does an insurer's subrogation right typically arise?

Accepted Answer

After the insurer has paid the insured's claim

Answer

At the time the policy is issued

Answer

Only after the claim has been litigated in court

Answer

When the at-fault party admits liability

Question 5

In a comparative negligence state, how does the at-fault party's percentage of fault affect subrogation recovery?

Accepted Answer

Recovery is limited to the at-fault party's percentage of fault

Answer

It has no effect; full recovery is always available

Answer

The insurer can recover the full amount regardless of fault percentage

Answer

Subrogation is barred entirely if the insured is partly at fault

Question 6

What is intercompany arbitration in auto subrogation?

Accepted Answer

An industry forum where insurers resolve subrogation disputes without litigation

Answer

A court process to determine liability between two insurers

Answer

A government-mandated mediation program for accident claims

Answer

A process by which insureds arbitrate repair disputes