An insurer has the right to recover payment made to the insured from the negligent party. These rights are called?

The correct answer is subrogation. Subrogation is a legal principle that allows an insurer to pursue recovery from a third party that caused loss or damage after the insurer has compensated the insured for that loss. When an insurer pays out a claim to the insured, it essentially steps into the shoes of the insured and can seek recovery from the party that was responsible for the claim. This process helps ensure that the insured does not receive a profit from insurance after being compensated while also allowing the insurer to recoup losses from the negligent party.

Understanding subrogation is crucial in insurance as it helps maintain balance in the insurance system and prevents the insured from making a profit from a loss, which the principle of indemnity aims to prevent. By exercising subrogation rights, insurers can keep premium costs down and ensure that responsible parties are held accountable.