Assignment Task:
Bao worked hard during the seminar and is amazed by how much he learned about insurance law. As he reviews his notes from the first class, he remembers how confused he was about terms such as subrogation and indemnity. Now that Bao has finished the seminar, how would he define those terms? a. Indemnity is a right held by any company to pursue claims against one of its employees; subrogation refers to a duty to make good on any loss, damage, or liability claims incurred by another. b. An indemnity clause is written into every life insurance policy that is taken out by a married man or woman, and subrogation is the process of awarding the monies to the widowed spouse. c. When an insurance broker signs a policy with the insured party, the broker is said to have completed subrogation. Indemnity refers to the responsibility that the broker has to the insured if any claims are filed through the policy. d. Subrogation is the right to pursue another party's claim; indemnity refers to a duty to make good on any loss, damage, or liability claims incurred by another.