Ace the Missouri Insurance Adjuster Exam 2025 – Adjust Your Way to Success!

In the context of subrogation, the insurer steps into the shoes of the insured to seek recovery for losses that the insurer has already paid out. This legal right to pursue another party for the indemnified amount typically applies when the insured's loss was due to the actions or negligence of another party.

In this example, Sue's insurer would be demanding payment from Ed because he is likely considered the party responsible for the damages that Sue incurred. By pursuing Ed for the indemnified amount, the insurer seeks to recover the costs of the payout it made to Sue. This reinforces the principle of subrogation, where the insurer can hold the liable party accountable after covering the insured's claim. The insurer's action serves both to recover payments and to discourage wrongful conduct by third parties.

The other individuals mentioned, such as Sarah, Beth, and Kevin, are not identified as being liable for the damages incurred in Sue's case, which is why the insurer is not seeking recovery from them. They likely do not have any direct connection to the incident that caused Sue's loss, making Ed the correct answer.