Which term refers to the act of an insurer seeking reimbursement from a third party responsible for a loss?

The correct term for the act of an insurer seeking reimbursement from a third party that is responsible for a loss is subrogation. Subrogation occurs after the insurer has paid a claim to the insured for a loss. Essentially, it allows the insurer to step into the shoes of the insured and pursue recovery from the party at fault for the damages. This process helps the insurer recoup costs associated with the claim, which can ultimately help to keep premiums lower for all policyholders.

Indemnification refers more broadly to compensating someone for a loss or damage, but it does not specifically describe the process of recovery from a third party. Premiums are the payments made to an insurance company for coverage, while exclusions refer to specific conditions or circumstances that are not covered by the insurance policy. Understanding subrogation is crucial for both insurers and insured parties, as it plays a vital role in claims management and the overall insurance process.