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 ?
It is important for subrogation vendors to conduct constant cybersecurity training, test employees, employ data security counseling (in-house and outside), and conduct regular data security audits.
Turner said Paradigm is aware that its clients may not be able to recover through subrogation the entire amount of the fees they pay.
Both the trial court in Dane County and the Court of Appeals, however, found that the subrogation waiver is enforceable and Rural Mutual could not collect.
The court also noted that Depositors had options other than a subrogation suit to seek payment from Dollansky or his insurance company.
"At first blush, the claim against the family might appear as an aggressive subrogation pursuit," Cozen's Feldman said.
While these provisions have been challenged with arguments about anti-indemnity legislation, prior breach of contract and questions about whether the insurance responding to the claim was actually procured for the project, overall, waivers of subrogation provisions have generally been upheld by courts as valid and enforceable components of an accepted risk-shifting mechanism.
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."
Missouri prohibits health plan subrogation clauses.
"On balance, we wish to re-emphasize that lawyers representing clients in personal injury, wrongful death, or other cases where there is a contingency fee should, as part of the representation, also represent those clients in resolving medical liens and subrogation claims related to the underlying case," the court said.
In the subrogation context, both the insurer/subrogee and the insured/subrogor should implement a litigation hold with the assistance of the adjuster or subrogation professional.
Property owners and contractors routinely agree to waive subrogation rights for damages.