A waiver of the transfer of recovery rights endorsement deletes the right to seek reimbursement from which party?

• A. The owner who caused the damage.
• B. The contractor who performed the work.
• C. The insurer.
• D. The board.

Answer: (A)

This question tests understanding of subrogation and how a waiver of recovery rights works. When an insurer pays for a loss, it normally has the right to recover those costs from the party responsible for the damage—the at-fault party—by stepping into the insured’s rights. A waiver of the transfer of recovery rights endorsement removes that subrogation right, meaning the insurer cannot seek reimbursement from the party who caused the damage. In a community association scenario, that party is typically the owner who caused the damage. So the right to seek reimbursement is deleted from the owner who caused the damage. The other parties listed aren’t the usual targets of subrogation in this context.