In the third-party example, what is the gross recovery from the negligent third-party defendant before deductions?

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Multiple Choice

In the third-party example, what is the gross recovery from the negligent third-party defendant before deductions?

Explanation:
Gross recovery is the total amount the negligent third party pays to the claimant before any deductions. In a third‑party subrogation scenario, the SIP or insurer is entitled to be reimbursed from that total. Here, the third‑party defendant pays $100,000 to settle with the plaintiff, so the gross recovery before deductions is $100,000. After deductions like attorney fees, costs, or other credits, the net amount the SIP can recover would be smaller, but the starting gross figure is the full $100,000.

Gross recovery is the total amount the negligent third party pays to the claimant before any deductions. In a third‑party subrogation scenario, the SIP or insurer is entitled to be reimbursed from that total. Here, the third‑party defendant pays $100,000 to settle with the plaintiff, so the gross recovery before deductions is $100,000. After deductions like attorney fees, costs, or other credits, the net amount the SIP can recover would be smaller, but the starting gross figure is the full $100,000.

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