A pre-event agreement to waive the right to seek recovery from a responsible party's insurance carrier for loss payments made to the insured is called what?

A pre-event agreement to waive the right to seek recovery from a responsible party's insurance carrier for loss payments made to the insured is called what?

• A. Waiver of Subrogation
• B. Business continuity
• C. Zero trust architecture
• D. Sexual harassment

Answer: (A)

Subrogation is when an insurer pays a claim on behalf of the insured and then has the right to pursue recovery from the party responsible for the loss. A pre-event agreement that waives that right prevents the insurer from seeking reimbursement from the responsible party’s insurer. This is known as a waiver of subrogation. It’s commonly used in contracts to avoid cross-claims between parties after a loss and to simplify settlements. The other options don’t fit because they refer to unrelated concepts: business continuity focuses on keeping operations running during disruptions, zero trust architecture is a cybersecurity approach, and sexual harassment concerns workplace conduct.

Subrogation is when an insurer pays a claim on behalf of the insured and then has the right to pursue recovery from the party responsible for the loss. A pre-event agreement that waives that right prevents the insurer from seeking reimbursement from the responsible party’s insurer. This is known as a waiver of subrogation. It’s commonly used in contracts to avoid cross-claims between parties after a loss and to simplify settlements.

The other options don’t fit because they refer to unrelated concepts: business continuity focuses on keeping operations running during disruptions, zero trust architecture is a cybersecurity approach, and sexual harassment concerns workplace conduct.