Alberta General Insurance Level 1 Practice Exam 2025 – 400 Free Practice Questions to Pass the Exam

Question: 1 / 400

When does subrogation proceedings initiate?

After a policy is cancelled

Once a claim is reported

After a 3rd party is identified as responsible

Subrogation proceedings occur after a 3rd party is identified as responsible. This means that after an insurance company pays out a claim, they have the right to seek reimbursement from the responsible 3rd party. This would not happen after a policy is cancelled, as there would be no claim to seek reimbursement for. It also would not happen before a claim is approved as there would be no confirmation of a responsible 3rd party at that point. And while subrogation could occur after a claim is reported, it cannot fully initiate until a 3rd party is identified.

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Before a claim is approved

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