JAMB Commerce 2012 Objective — Question 19

Question 19 of 50 from the Joint Admissions and Matriculation Board (JAMB) Commerce 2012 Objective paper, with the correct answer and a full explanation.

The right of an insurance company to stand in place of an insured against a third party, who is liable for the occurrence of a loss, is the principle of

A. proximate cause
B. insurable interest
C. insurance priority
D. subrogationCorrect

Explanation

Subrogation means that the ownership of an item that has been fully indemnify goes to the insurance company. Thus, the insurance company can stand in place of the owner.

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