State Farm Auto Insurance Practice Test

If a claim is subrogated, what does this imply about the insured?

1. The insured is definitely at fault

2. The insured may not be at fault

3. The insured has no coverage

4. The insured's claim is pending

The correct answer is: The insured may not be at fault

When a claim is subrogated, it means that the insurance company is seeking to recover the amount it paid to the insured under their policy from a third party who may have been responsible for the loss. This process indicates that the insurance company believes that another party could be liable for the damages incurred. The implication for the insured here is that they may not be at fault for the incident that led to the claim. In cases of subrogation, the insured could be indirectly impacted by another party's actions, and the insurance company is looking to recoup their costs from that party. This shows that the insured’s circumstances can vary, and they are not necessarily the ones to blame for the situation, which distinguishes this from options that either imply fault or suggest a lack of coverage.