Responsibility for payment of liability losses

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The Smallville Mall has assumed the responsibility for payment of liability losses caused by Chuck's Famous Pizza to attract the pizza chain to the mall. Smallville Mall's insurer knows the existence of this hold harmless agreement and includes a "waiver-of-subrogation" clause in its insurance policy. One of Chuck's employees is found guilty of sexual harassment in the mall. Smallville Mall's insurer pays the liability judgment. Who does Smallville Mall's insurer collect from under its subrogation rights?

Select one:

a. Chuck's Famous Pizza,

b. Smallville Mall,

c. Chuck's Famous Pizza's insurer,

d. No collection would take place since Smallville Mall is ultimately responsible.

Reference no: EM132537816

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