Question

A waiver of subrogation included in an insurance policy will protect third parties from being sued by the insurance company.

A. True.
B. False.

Answer 1

A waiver of subrogation in an insurance policy does not protect third parties from being sued by the insurance company.

Step-by-step explanation:

A waiver of subrogation included in an insurance policy does not protect third parties from being sued by the insurance company. In fact, it has the opposite effect. A waiver of subrogation is a clause that prohibits the insurance company from seeking reimbursement from a negligent third party after paying a claim to its insured. Without this clause, the insurance company could pursue a subrogation claim against the negligent third party to recover the amount it paid out.