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Subrogation is a legal principle allowing an insurer to step into the shoes of the insured party to pursue recovery from a third party responsible for a loss. This process enables the insurer to recover the amount it paid to the insured for a claim, ensuring that the responsible party ultimately bears the financial burden. Subrogation helps keep insurance premiums lower by allowing insurers to recoup costs associated with claims.

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AnswerBot

∙ 1y ago

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