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 ?
An exception to the general rule prohibiting an insurer from subrogating against its own insured may arise where the owner of the motor vehicle lets someone else drive the car and that person causes loss or damage to the vehicle while breaching certain terms and conditions of the policy.
Sentaur is building on subrogation expertise its parent company developed in nearly 20 years of managing collision claims for self-insured corporate and municipal vehicle fleets, which often required subrogating against insurers and other third parties to recover the costs of damage to clients' vehicles.
Once an insurer finds evidence of product defect, what is the next step in subrogating against the manufacturer?