Ace the Alberta General Insurance Level 1 Exam 2026 – Insure Your Success Today!

Subrogation is the process by which an insurer takes over the rights of the insured to seek compensation from a third party. This typically happens when an insurer pays out a claim to the insured and then seeks reimbursement from the responsible party. Options A, B, and D are incorrect because they do not accurately describe subrogation. Option A, a type of insurance policy, is too broad and does not specify what type of policy. Option B, a method of calculating premiums, is not related to subrogation at all. Option D, renewing a policy before it expires, is also unrelated to subrogation. Option C is the only choice that accurately describes the concept of subrogation.