Subrogation rights arise after what event?

• A. After the insured reports a loss
• B. After paying a claim
• C. After policy renewal
• D. After underwriting

Answer: (B)

Subrogation rights arise once the insurer has paid the claim to indemnify the insured. After paying, the insurer can step into the insured’s shoes and pursue the party responsible for the loss to recover those funds. This ensures the loss is ultimately borne by the party at fault and prevents the insured from being paid twice. Merely reporting a loss, renewing a policy, or underwriting does not create subrogation rights—the trigger is the insurer’s payment to indemnify the loss.