Estimated Amount Receivable from Third Parties

A

The estimated amount receivable from third parties from whom the insured may have the right to recover damages is known as "reduction for subrogation." Therefore, the correct answer is A.

Subrogation is a legal principle that allows an insurer to pursue a claim against a third party that caused an insured loss, after the insurer has paid a claim to the insured. The purpose of subrogation is to prevent the insured from collecting twice for the same loss, once from the insurer and again from the third party responsible for the loss.

For example, if an insured's car is damaged in an accident caused by another driver, the insured's auto insurance company may pay to repair the car. The insurance company can then pursue a claim against the other driver's insurance company or the driver directly for the amount paid to the insured. If the insurer is successful in recovering the amount paid, this will reduce the total amount of the claim that the insurer has to pay to the insured, hence the term "reduction for subrogation."

In summary, reduction for subrogation is the estimated amount of money that the insurer expects to recover from a third party responsible for the loss. It reduces the overall amount of the claim that the insurer has to pay to the insured.