Duties of an Insurer

The video explains the insurer's responsibilities in handling contingent risks, including paying for damages to property or third parties. It covers the insurer's duty to defend the insured in legal actions and the right of subrogation, allowing the insurer to recover losses from third parties after compensating the insured.

What is the primary obligation of an insurer when a contingent risk is identified?

• To transfer the risk to another insurer

• To cancel the insurance policy

• To pay for any losses or damages incurred

• To increase the premium

In liability situations, what is the insurer's role when a third party sues the insured?

• To increase the insured's premium

• To terminate the policy

• To ignore the lawsuit

• To provide legal defense for the insured

Why is it beneficial for the insurer to defend the insured in legal actions?

• It reduces the insurer's potential liability

• It helps the insurer avoid paying taxes

• It increases the insurer's profits

• It allows the insurer to cancel the policy

What does the right of subrogation allow the insurer to do?

• Increase the insured's coverage

• Pursue third parties for recovery of losses

• Cancel the insured's policy

• Transfer the risk to another insurer

When does the insurer gain the right to subrogation?

• When the insured requests it

• When the policy is renewed

• After the insured pays the premium

• After the insurer compensates the insured for losses