Subrogation

Subrogation is a legal device whereby an insurer "stands in the shoes" of an insured person for purposes of recovering personal injury damages or health care costs. Typically, a subrogation claim arises when a third party injures an insured person. The insurer pays for treatment of the injuries and then attempts to collect payment for those damages from the third party. A subrogation obligation may arise by contract or pursuant to equity principles. Each state has its own specific laws regarding the subrogation process and the settlement process for third party lawsuits. Read more