SKEPTIC DOUBTFUL Co. obtained a fidelity bond for its cashier. During the year, the cashier embezzled funds of SKEPTIC. The legal principle that prohibits SKEPTIC from claiming compensation directly from the cashier is *a. Principle of subrogation. b. Principle of contribution. c. Principle of loss minimization. d. Principle of indemnity.
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Principle of subrogation: This principle allows the insurer to pursue legal actions against the third party responsible for the loss, after compensating the insured. In this case, after compensating SKEPTIC, the insurer can pursue legal actions against the Show more…
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