New York State Private Investigator Practice Exam

What is the concept of subrogation?

1. Inducing false testimony

2. Substituting one person's claim rights for another's

3. Watching someone covertly

4. Injury resulting from a wrongful act

The correct answer is: Substituting one person's claim rights for another's

Subrogation is a legal concept that involves the substitution of one party for another in terms of rights to pursue claims, typically related to insurance. When a party (usually an insurer) pays a loss suffered by the insured, subrogation allows that insurer to take over the insured's rights to seek recovery from the party that caused the loss. This means that the insurer can "step into the shoes" of the insured to claim compensation from a third party who is responsible for the loss. This process ensures that the party at fault ultimately bears the financial responsibility for their actions, rather than allowing the insured to profit from their loss at the insurer's expense. The other options relate to different concepts. Inducing false testimony pertains to illegal influences in the judicial process. Watching someone covertly involves surveillance, which has its own legal implications but does not relate to subrogation. Lastly, injury resulting from a wrongful act pertains to tort law and liability but does not define subrogation, which is specifically about the transfer of rights to claim compensation.