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 ?
A determination should be made as early as possible about whether a claim is worth subrogating.
On the other hand, notification is not required when subrogating a personal auto claim.
Problems arose when the subrogating insurer discarded the vehicle in question and let the salvage be squashed into a washing machine-sized cube.
Moreover, many of these statutes require that the homeowner, including a subrogating insurer standing in the shoes of the homeowner, allow the contractor a mandated period of time, typically 60 days, within which to repair the defect.
It also speeds processing and reduces the expense of subrogating the claim.
How are the insured's duty of cooperation and the insurer's undertaking of a subrogation investigation affected if the subrogating insurer determines that the liability insured is covered under a separate policy issued by that insurer?