Shell Casualty Co. insures Bob under a PAP and also insures Ted under a seperate PAP. Bob and Ted were involve?

Shell Casualty Co. insures Bob under a PAP and also insures Ted under a seperate PAP. Bob and Ted were involve?

Shell Casualty Co. insures Bob under a PAP and also insures Ted under a seperate PAP. Bob and Ted were involved in an auto accident when Bob ran a red light and struck Ted'-s car. Shell paid damages to Ted under his collision coverage. Shell then sent Bob a notice of intent to subrogate. Bob denies that he has any liability to Shell. Shell argues that Bob is liable to it for its payment to Ted because the accident resulted from Bob'-s negligence. If Shell sues Bob,who will prevail? A. Bob because an insurer cannot subrogate against its owninsured. B. Bob because he cannnot be liable to Ted for any damages Ted suffered in the accident. C. Shell because Bob is a legally liable third party as to Ted. D. Shell because Bob is not an additional insuredunder Ted'-s auto policy.Read more:|ga|1|Law|Subrogate&-JPKW=subrogate&-JPDC=S&-JPST=&-JPAD=3434608803&-JPAF=txt&-JPCD=20100304&-JPRC=1&-gclid=COGP2IeAo6ECFRUeDQodNxqnyQ#ixzz0m9rMa17e


That's not how it works in the real world.The two adjusters sit down over a cup of coffee, go to their supervisor, and determine fault. Likely, only one adjuster will even be assigned to this claim. Bob's property damage would pay out to Ted, with no deductible for Ted, if that's the way the state laws go.An insurer CAN subrogate against an insured, if they're doing it on behalf of ANOTHER insured. Why in the world do you think Bob cannot be held liable to Ted?Shell will pay Ted, under Bob's coverage. Period. That's how it works.


Since Shell paid Ted, they stand in his shoes and have a right to seek a recovery against the at fault party (tortfeasor is the technical word) which in this case is Bob. Since Bob has insurance any liability for the accident would be covered by that policy so they would pay on Bob's behalf.However, since Shell insures both Bob and Ted should they elect to sue Bob to try and recover the damages they paid to Ted, they would be obligated to defend Bob in the lawsuit and pay any award or verdict that may be entered against Bob.Since Shell would be both pursuing the recovery and paying on behalf of Bob, they would almost certainly never pursue their own insured. The only time this would be even considered as a course of action would be if the damages paid to Ted exceeded the Bob's policy limits and Bob had assets to pay the amount of damages that were over the policy limits.A is wrong because an insurer can subrogate against their own insured, they just cannot subrogate against the insured they paid the claim to. (They couldn't sue Ted, for instance, to recover some of the money they paid him if they determined he was partially at fault for the accident).B is wrong and makes no sense because the premise of your question was that Bob was at fault for the accidentC is correct, although as outlined above they would never sue Bob because they would be paying themselves back for the damages Bob owes to TedD is wrong and makes no sense as the question of additional insured status is not relevant to the issue raised in the question(20 years claims veteran with the scars to prove it)



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