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 ?
After paying out the employer, the insurer sought to subrogate against the employee.
The courts have held that builders' risk insurers are entitled to subrogate against subcontractors provided coverage "as their interests may appear," concluding that this term is intended only "to give the subcontractor an interest in the building according to the amount of the subcontractor's work and material already utilized.
If an employer does not provide all of the proper medical treatment to the veteran and the veteran goes to the VA for care, it has the right to subrogate.
2-4] have no fraudulent transfer rights under state law to which the trustee could subrogate, then X could retain the surplus.
These courts reason that the policyholder chose the policy limits, and if the insurer compensates the policyholder in accordance with its obligations under the policy, the insurer should be permitted to subrogate for that amount.
In practice, the insurer's right to subrogate upon payment of any portion of the loss does not cause hardship to the insured.
Also, improve risk management, expedite claims, decrease administrative costs and give insurers needed data to subrogate claims and recover expenses.
In the list of technical prescriptions indicates the places of development of the service contract (Town Hall, cultural centers, sports facilities, school groups and other municipal units), the staff to carry out the tasks (attached the Annex of personnel to subrogate ), The description of the tasks to perform and the frequency.
However, if a third party other than the employer or a fellow employee causes the loss, the insurance company may subrogate the loss and sue the negligent (loss causing) party.
Related: Can you successfully subrogate snow-removal claims?
The long-term profitability of a political risk book depends on the recoverable that we subrogate once we pay the claim.