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The term that refers to the substitution of one person or group by another regarding a debt or insurance claim is subrogation. Subrogation occurs in insurance and debt contexts when one party steps into the shoes of another party to pursue a claim or to collect a debt. For example, when an insurance company pays a claim to a policyholder, it may exercise its right of subrogation to pursue reimbursement from a third party that is responsible for the loss.

Subrogation is a crucial mechanism in insurance laws and helps ensure that the responsible party ultimately bears the financial burden of the loss. This concept maintains fairness in financial responsibilities and strengthens the insurance framework by allowing insurers to recover costs, which can ultimately help keep premiums lower for consumers.

In contrast, the other terms have different meanings. The transfer of rights generally pertains to the process of transferring legal rights from one party to another but does not specifically involve the substitution aspect of subrogation. The assignment of debt refers to the process by which a creditor transfers their right to receive payment to another, and debt consolidation refers to the act of combining multiple debts into a single loan, often to simplify repayment. Each of these terms, while related to financial transactions, does not accurately capture the specific process described by