Subrogation


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Subrogation

An insurance process whereby a company that has paid out to a policyholder for a loss incurred recovers the amount of the loss from the party that is legally liable.

Subrogation

The transfer of a claim or legal right from one party to another. Subrogation is often associated with the transfer of the right to a debt from one person to another. That is, a creditor can give or sell his/her right to a debt to some third party. See also: Forfaiting.

subrogation

The substitution of one party for another.Insurance companies typically have rights of subrogation, so if the insurer pays the property owner for a loss, such as a house fire, and then discovers that loss was the fault of a third party, the insurance company may sue and recover from the third party.

References in periodicals archive ?
We cannot expect policyholders to fully understand subrogation or the value of preserving evidence.
Consider the discussion of real subrogation in Aubry and Rau's classic analysis of the patrimony:
The doctrine of subrogation does not arise from statute or custom, but is peculiarly a creation of equity, grounded on the proposition of doing justice to the parties without regard to form.
If subrogation were not available, the actual cost of insurance would rise in part because there would be no mechanism to prevent the insured from collecting from both the insurer and the party responsible for the same loss.
All too often, it is demanded that party A also add a waiver of subrogation endorsement to the CGL policy.
Indeed, no statute even refers to APIP benefits, much less a subrogation claim by an APIP carrier against a tortfeasor," Judge Robert S.
The rationale of what has come to be called the "Sutton Rule" by some is that a tenant is something like a permissive user of an automobile and thus becomes an implied coinsured at least for the purposes of subrogation, although the tenant does not become an implied insured for purposes of other coverage matters.
An insurance company's right of subrogation arises from a longstanding principle of insurance law.
A subrogation agreement protects an insurance company from paying a claim to the insured that has been paid already by another insurer.
In general, New York courts have consistently held that a waiver of subrogation provision contained in a lease negotiated between two sophisticated parties in an arm's length transaction is valid and enforceable, provided the intention of the parties is clearly and unequivocally expressed.
Subro Accelerator could save health plans as much as 30-45% over traditional post-pay subrogation models