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 ?
The trial court's finding on this issue was in reliance upon the mutual waiver of subrogation rights contained in the lease and the holding in Dix stating tenants are " at any time and at any place coinsureds with their landlord" with the "only exception being if the parties had a clear agreement to the contrary.
Federal employees sued in state court over a subrogation clause.
During the adjustment of the first-party claim, the insured should be notified of the subrogation investigation and the possibility of litigation.
We must decide whether, under the plain meaning of the AIA contract, property owners waive subrogation rights for construction damages by maintaining "all-risk" property insurance policies that cover both their construction-related damages and their entire property.
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.
But the Sereboff ruling affects only the rules governing subrogation in North Carolina, South Carolina and Virginia, while the H.
A typical response is the insurer still maintains a fight to recover from party B via the principle of subrogation.
Subrogation and recovery departments have become important revenue centers for both insurance companies and for their insured policyholders.
Because the guarantor acquires the debt by subrogation (i.