Florida Life and Health Insurance License Practice Test

Subrogation is the reimbursement of benefits for the treatment of a beneficiary's injuries caused by a third party. This means that instead of the beneficiary paying for the treatment out of their own pocket, the insurance company will pay for it and then seek reimbursement from the third party at fault.

Option A (deductible) is incorrect because a deductible is the amount that a beneficiary must pay before the insurance company starts covering the costs.

Option B (co-payment) is incorrect because a co-payment is a fixed amount that a beneficiary is responsible for paying towards the cost of their medical treatment.

Option D (premium) is incorrect because a premium is the amount that a beneficiary pays to the insurance company in exchange for coverage. It does not involve reimbursement for treatment.