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JAMB Commerce 2014 Objective — Question 19

Question 19 of 50 from the Joint Admissions and Matriculation Board (JAMB) Commerce 2014 Objective paper, with the correct answer and a full explanation.

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The insurance principle that allows an insurance company to take over the rights of the insured once he has been compensated is

  • A. indemnity
  • B. proximate cause
  • C. utmost good faith
  • D. subrogationCorrect

Explanation

After an insured has been fully indemnified, the ownership of the remains goes to the insurance company — this is the principle of subrogation.

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