Which of the following statements concerning the insurance term, "indemnity", is correct? I. Subrogation is the right, upon paying the insured the amount of a loss, to try to collect from a responsible third party. II$.$ Indemnity is when an insured is entitled to payment in excess of the actual extent of financial loss or legal liability.

I only.

II only.

Both I and II$.$

Neither I nor II$.$