CALA Subrogation & Recovery 2

Question 1

Under which circumstance is an insurer generally NOT entitled to pursue subrogation?

Accepted Answer

The loss was caused by the insured's own negligence

Answer

The third party was negligent

Answer

The third party has insurance

Answer

The loss involved a commercial vehicle

Question 2

What is 'contribution' in the context of insurance recovery?

Accepted Answer

The right of an insurer that has paid a claim to seek reimbursement from other insurers covering the same loss

Answer

The premium paid by the insured

Answer

The deductible applied to a claim

Answer

The insured's share of a coinsurance penalty

Question 3

Which element is NOT required to establish a valid subrogation right?

Accepted Answer

The third party must be insolvent

Answer

The insurer must have paid the claim

Answer

The insured must have suffered a covered loss

Answer

A third party must be legally responsible for the loss

Question 4

A 'waiver of subrogation' clause in a contract typically benefits which party?

Accepted Answer

The third party identified in the contract

Answer

The insurer paying the claim

Answer

The insured filing the claim

Answer

The state regulatory authority

Question 5

What is the most common method used to apportion a subrogation recovery between the insurer and the insured when the insured had an uninsured loss (e.g., a deductible)?

Accepted Answer

Pro-rata apportionment based on respective losses

Answer

First-in, first-out rule

Answer

The insurer retains the full recovery

Answer

The insured retains the full recovery

Question 6

When an adjuster identifies strong subrogation potential, what is the FIRST step that should be taken?

Accepted Answer

Preserve evidence and document the cause of loss thoroughly

Answer

File suit against the responsible party immediately

Answer

Settle the claim at a reduced amount

Answer

Notify the state insurance department

Question 7

Which of the following best describes 'lien subrogation' in a health insurance context?

Accepted Answer

The health insurer asserts a right to be reimbursed from any third-party personal injury recovery the insured receives

Answer

The insurer pays the provider directly and bars the insured from collecting

Answer

The insurer places a lien on the insured's property as collateral

Answer

The insurer subrogates against its own policy for overpayment