Subrogating financial definition of subrogating
Subrogation (redirected from subrogating)
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Related to subrogating: Subrogor
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.
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
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
An exception to the general rule prohibiting an insurer from subrogating
against its own insured may arise where the owner of the motor vehicle lets someone else drive the car and that person causes loss or damage to the vehicle while breaching certain terms and conditions of the policy.
Sentaur is building on subrogation expertise its parent company developed in nearly 20 years of managing collision claims for self-insured corporate and municipal vehicle fleets, which often required subrogating
against insurers and other third parties to recover the costs of damage to clients' vehicles.
Once an insurer finds evidence of product defect, what is the next step in subrogating
against the manufacturer?