If a policy includes a Waiver of Subrogation, which party gives up subrogation rights?

• A. The Insurer
• B. The Insured Against the Insurer
• C. The Party Waiving Subrogation
• D. The Insured Against the Insured

Answer: (C)

Subrogation is the insurer’s right to recover paid claim costs from the party responsible for the loss. When a waiver of subrogation is included, the party that signs the waiver gives up that right. In other words, the waiving party cannot pursue recovery from the other party, and the insurer cannot seek reimbursement from that party either. This is often used in contracts like leases or service agreements to avoid disputes between contracting parties after a loss.