The contract insurance article includes a waiver of subrogation for covered property losses. What does that waiver generally limit?
Correct Answer
D) Insurer recovery claims against parties protected by the waiver
A waiver of subrogation generally limits an insurer's ability to pursue recovery from parties protected by the waiver for covered losses. Other choices concern submittals, bidding, or inspection rights.
Why This Is the Correct Answer
A waiver of subrogation generally limits an insurer's ability to pursue recovery from parties protected by the waiver for covered losses. Other choices concern submittals, bidding, or inspection rights.
Why the Other Options Are Wrong
Option A: The contractor's duty to submit shop drawings
Choice A gives The contractor's duty to submit shop drawings. Its specific error: the choice would not get the project to Insurer recovery claims against parties protected by the waiver, which is the Waiver of subrogation result verified by the source.
Option B: The bid date stated in the invitation, leaving waiver of subrogation unverified
Choice B (The bid date stated in the invitation) is rejected because it names a financial document or payment mechanism, not the Waiver of subrogation action/result stated by Insurer recovery claims against parties protected by the waiver.
Option C: The owner's right to inspect work, leaving waiver of subrogation unverified
In procurement and contracting, The owner's right to inspect work is the wrong selection for Waiver of subrogation: it points to The owner's right to inspect work, but.
Memory Technique
Link waiver of subrogation to its book condition; a different condition means a different answer than Insurer recovery claims against parties protected by the waiver.
Reference Hint
Open NASCLA Contractors Guide to Business, Law and Project Management, 14th Ed.; use the index entry or section for "Insurance waiver of subrogation" to confirm that A waiver of subrogation generally limits an insurer's ability to pursue recovery from parties protected by the waiver for covered losses.
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