What does the term "Subrogration" mean in the field of insurance?

Answer 1

Subrogation is where one person assumes the legal rights of another person for whom the first person has paid expenses or a debt on their behalf.

Subrogation is best known as a concept of insurance law. It can be applied outside the law of insurance, although the general laws against maintenance and champerty would otherwise prevent such an arrangement. When an insurer is required to pay a claimant a sum of money, it is almost always allowed to sue in the name of the claimant against any person who was responsible for the loss. This concept allows an insurance company to sue on behalf of its insured if it is required to pay the insured for a loss caused by another person. However, it also allows an insurance company to recover against its own insured when it is required to pay a third party claimant under the authority of a statute, where otherwise the insured would not be covered for the loss. In most cases, the subrogated claim is fought between two insurance companies disputing who was ultimately responsible for the loss without putting a financial burden on the insured parties.

The other principal area of subrogation law is where payment is made on a guarantee, and the paying party becomes subrogated to the primary debt equal to the amount of the payment that they make. In most legal systems, the paying party is also subrogated to any security which the original creditor held for the debt.

Subrogation can also arise between consenting parties by contract.

However, subrogation is a general principle of law, and could in theory arise in any analogous situation where one party is compelled to discharge the debt or obligation of another.

The party seeking to enforce the rights of another is the subrogee. The party whose rights the subrogee is enforcing is the subrogor. The subrogee must usually sue the tortfeasor in the name of the subrogor. Standard insurance contracts require the insured to cooperate with their insurer in pursuing subrogation against third parties. If the insured refuses to cooperate, the insurer can sue the insured for breach of contract as well as the third party tortfeasor.

Subrogation in insurance contracts was originally thought to be based on an implied term in the contract of insurance, but in most common law jurisdictions, subrogation is an equitable remedy and is subject to all the usual limitations which apply to equitable remedies.[1]

Subrogation is generally considered in most legal systems to form part of the law of restitution by preventing the unjust enrichment, by preventing the subrogor from receiving funds from the subrogee and then still claiming the original sum of money from the tortfeasor/debtor.

Answer 2

This concept allows an insurance company to sue on behalf of its insured if it is required to pay the insured for a loss caused by another person. However, it also allows an insurance company to recover against its own insured when it is required to pay a third party claimant under the authority of a statute, where otherwise the insured would not be covered for the loss. In most cases, the subrogated claim is fought between two insurance companies disputing who was ultimately responsible for the loss without putting a financial burden on the insured parties.

Answer 3

You mean "Subrogation".

When a insurance company pays the policyholder (Insured) for a Loss for which some person other than the policyholder is responsible, the insurance company has the right to recover its loss from the negligent party. This is the right of "subrogation".

Answer 4

The insurance company goes after the "at fault" party after paying out to their insured.

Example - Joe's car get's hit by Fred's car. Joe's insurance pays to fix Joe's car, then THEY go after Fred for it. If Fred has insurance, and they get the $$ back, they then give JOe his deductible back. If Fred has no insurance, they sue him in court & get a judgement, but probably can't collect.

Answer 5

RE:
What does the term "Subrogration" mean in the field of insurance?

Answer 6

Subrogation is what an insurance company does to get their money that was paid out for an accident. My wife was in a non-fault accident with a woman, and the woman didn't have insurance. As a result, our insurance wound up totalling out her vehicle, and paid her book value for it. The insurance company is now going after the woman who hit my wife to collect on the $5,000 that they paid out for the accident.

Answer 7

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In insurance, we go through "hard" and "soft" markets. Hard, where prices go up and some coverages are hard to find, and soft, where prices go really low. Just like the stock market cycle is "bull and bear", the insurance market cycle is "hard and soft".

Answer 8

What Does Subrogation Mean

Answer 9

If someone else causes your injury, your health plan will initially pay for you health care, when you get a lawyer and sue the responsible party part of your settlement will go back to your health insurance to repay what they paid out.

Answer 10

sorry, no idea
need to be explained