When an insurer pays a loss, what right does it acquire through subrogation?

When an insurer pays a loss on behalf of the insured, it acquires the right to pursue recovery from third parties who may have caused or contributed to that loss through a legal process known as subrogation. This means that the insurer steps into the shoes of the insured and has the right to claim against any third parties responsible for the damage or injury that led to the loss.

This concept is important because it helps the insurer recover some of the costs associated with the claim they paid out. By exercising the right to subrogation, the insurer can seek reimbursement from the responsible party, which can ultimately help keep premiums lower for all policyholders.

The other options do not accurately represent the nature of subrogation. For example, the insurer does not gain the right to refuse future claims or increase premiums solely because of exercising subrogation rights; those actions are governed by the insurance policy terms and state regulations. Likewise, the insurer does not obtain the insured's policy details through subrogation; those are inherent to the terms of the policy in place. Thus, the correct answer reflects the legal recourse that becomes available to the insurer once they have compensated the insured for their loss.