Questions: Early one morning, a car crashed through the plate glass window of Monique's ice cream shop, causing substantial damage. Fortunately no one was in the shop at that hour. Monique's commercial property insurer, AllCo paid her claim promptly, allowing Monique to repair the darnage. Subsequently, AllCo pursued a clain-against driver who caused the accident, through his auto Insurer. The auto insurer eventually paid AllCo the full amount they had provided to Monique. This situation is an example of what concept? a Double dipping b Reclamation C Reinsurance d Indemnity e Subrogation

The answer is e Subrogation

Double dipping refers to the practice of claiming benefits or compensation from two different sources for the same loss or expense. This is not applicable in this scenario as Monique only received compensation from her commercial property insurer, AllCo.

Reclamation generally refers to the process of claiming something back or the recovery of something. While AllCo did recover the amount from the driver's auto insurer, the specific term for this process in insurance is subrogation, not reclamation.

Reinsurance is a practice where an insurance company purchases insurance from another insurer to mitigate risk. This is not relevant to the scenario described, as it involves the recovery of a claim amount from a third party, not the sharing of risk between insurers.

Indemnity is a principle in insurance where the insurer provides compensation to the insured for a loss, restoring them to their financial position prior to the loss. While AllCo indemnified Monique by paying her claim, the scenario specifically describes the recovery process from the responsible party, which is subrogation.

Subrogation is the process by which an insurance company, after paying a loss to its insured, seeks to recover the amount of the loss from the party responsible for causing it. In this case, AllCo paid Monique for the damages and then pursued a claim against the driver who caused the accident, recovering the amount from the driver's auto insurer. This is a textbook example of subrogation.