CCP Subrogation Recovery Process 2

Question 1

Which doctrine bars subrogation recovery when the insured has not been made whole by the insurance payment?

Accepted Answer

Made Whole Doctrine

Answer

The Made Whole Doctrine prevents an insurer from pursuing subrogation until the insured has been fully compensated for all losses, including uninsured portions.

Question 2

When two insurers cover the same loss and one pays, what legal right allows the paying insurer to seek contribution from the other?

Accepted Answer

Equitable Contribution

Answer

Equitable contribution allows an insurer who paid more than its proportionate share to recover the excess from co-insurers covering the same risk.

Question 3

A subrogation claim is filed three years after the loss date, but the applicable statute of limitations is two years. What is the most likely outcome?

Accepted Answer

The claim is time-barred

Answer

A claim filed after the statute of limitations has expired is time-barred, and the defendant can assert this as a complete defense.

Question 4

Which method of calculating the statute of limitations for subrogation begins running from the date of the insurer's payment to the insured?

Accepted Answer

Payment Rule

Answer

Under the Payment Rule, some jurisdictions start the limitations clock from when the insurer paid the insured, not from the date of the underlying loss.

Question 5

An insured signs a lease clause releasing the landlord from liability before the loss. How does this typically affect the insurer's subrogation rights?

Accepted Answer

The insurer loses subrogation rights against the landlord

Answer

Pre-loss contractual waivers of subrogation signed by the insured generally extinguish the insurer's right to subrogate against that party.

(CCP) Certified Claims Professional Practice Test

(CCP) Certified Claims Professional Practice Test

CCP Subrogation Recovery Process 2