Subrogation

(redirected from subrogated)
Also found in: Dictionary, Thesaurus, Legal, Encyclopedia.

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 ?
noting the right of the Canadian government to be subrogated to any rights of employee for amounts distributed by Wage Earner Protection Program).
in holding that the Federal Land Bank is entitled to be subrogated to the lien of the first mortgage .
2002), a trustee became subrogated to fraudulent transfer claims of [C.
Triborough Bridge Authority,(17) the court held that it was error for the lower court to have denied the surety summary judgment on its claim for the balance of the interpleaded funds, stating that since the "surety made payments under its bond and became subrogated to the rights of the city, it has a superior right to the funds withheld by the city.
Thus, the insured is generally a key witness in proving a subrogated claim against the wrongdoer, and the insurance company needs the insured's full cooperation to successfully pursue a claim against the wrongdoer.
Hansen,(44) a Wisconsin Supreme Court case holding that a fidelity bond insurer which pays a bank's loss attributed to a bank employee's fraudulent or dishonest acts is not subrogated to the bank's right to sue its directors for their negligence in failing to prevent the loss.
In that same month, the Program collected over eight million dollars from debtors, $500,000 from other provinces and territories, and $800,000 in subrogated arrears.
In bankruptcy, unpaid subcontractors and subrogated sureties share entitlements and proceeds of government construction contract after government's exercise of right to set-off, but one agency does not step into shoes of another.
Atlantic Mutual insured and paid a claim on $45,000 in specie, $96,313 in general cargo and $150,000 for the hull and became the subrogated owner of hull and cargos on the SS Republic.
Costa focuses in insurance, ranging from cover disputes, defence work, subrogated recoveries and regulatory and compliance work.
Insurers can be subrogated only to those rights possessed by the insured.
that the insurer should be subrogated, either contractually or equitable, to the rights of the insured;(6)