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subrogation n. assuming the legal rights of a person for whom expenses or a debt has been paid. Typically, an insurance company which pays its insured client for injuries and losses then sues the party which the injured person contends caused the damages to him/her. Example: Fred Farmer negligently builds a bonfire which gets out of control and starts a grass fire which spreads to Ned Neighbor's barn. Good Hands Insurance Co. has insured the barn, pays Neighbor his estimated cost of reconstruction of the barn, and then sues Farmer for that amount. Farmer will have all the "defenses" to the insurance company's suit that he would have had against Neighbor, including the contention that the cost of repairing the barn was less than Neighbor was paid or that Neighbor negligently got in the way of fire fighters trying to put out the grass fire. (See: subrogee, subrogor, negligence)Copyright © 1981-2005 by Gerald N. Hill and Kathleen T. Hill. All Right reserved.

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Related Questions

Transfer of rights of recovery against others to us is also known as?

waiver of subrogation


What states do not allow a waiver of subrogation?

does Texas allow waiver of subrogation for workers compensation


Can you get a workers compensation waiver of subrogation in Kentucky?

No. The state of KY does not allow Waivers of Subrogation for Work Comp.


Is there subrogation in life insurance?

No, there is no Subrogation lien held by a life insurer for death benefits, as it is never deemed the compensation for damages caused by another - the underlying basis for all other Subrogation matters..


What is the difference between common law subrogation and contractual subrogation?

First, the difference used to matter in the US, but in most instances the difference is negligible now. Common law subrogation arises from the historic decisions of the courts of the state or jurisdiction where the subrogation lien arose. These courts in almost every state established laws that provided that a payor of another's true debt would have a claim against the responsible party (or - more accurately - a lien on the harmed party's claim against the responsible party). Contractual subrogation technically arises out of a contract (such as an insurance policy or mortgage agreement) that provides in a clause or two that if payments need to be made then the payor will have a claim (or a lien on the claim) against the responsible party. Nowadays, the distinction between the two is very blurry as most courts recognize the common law subrogation right, and treat it in tandem with the contractual subrogation rights. Ken Levine; Nelson, Levine, de Luca & Horst


What should you do when hit with a subrogation claim that is false?

You have to defend your self just as if the lawsuit was filed by the original claimant. If you have an insurance carrier, tender the claim to them in writing immediately and your carrier should handle it for you. If you don't have insurance, you should hire a lawyer to defend against the claim. In subrogation, the insurance carrier seeking subrogation has the same rights as their policy holder. They bear the same burden of proof that the alleged victim would have had at trial.


Does cigna healthcare have subrogation rights against auto insurance medical payments coverage?

If Cigna had paid on charges which rightfully should have been paid by the auto insurance, yes. The subrogation would be performed by Cigna's overpayment recovery vendor, accent. This should not make a difference to the patient, as Cigna will cover once the auto insurance coverage is exhausted.


What is a waiver of subrogation?

A Waiver of Subrogation is a specific kind of endorsement on property-causal insurance policies. It keeps the insurer from trying to get restitution from third parties who cause a loss to the insured party.


What does waiver of subrogation mean?

A waiver of subrogation in commercial insurance means that you waive the right for your insurance company to collect reimbursement from the insurance company of the other party. An example would be a subcontractor who is injured by the actions of someone in the employ of the general contractor. If a waiver of subrogation was included in the insurance policy, the subcontractor has given up the right to collect from the insurance company of the general contractor.


How should I respond to a subrogation claim that I agree to pay?

If you agreed to pay the subrogation claim.. The customary way to respond is with a Check or money order in the amount you agreed to pay.


Subrogation and contribution as a corollaries of the principles of indemnity?

The principle of indemnity is one of the most important rules in insurance. The principle of subrogation and indemnity protects someone from multiple claims.


What is a letter of Subrogation?

A letter of subrogation is a letter that a claims adjuster uses to notify a third party who is liable for damages to something. This letter can also be used in the beginning process of the recovery of the damage.