What Is Subrogation?
The insurer's right, after paying a claim, to pursue a third party responsible for the loss to recover the amount paid. It prevents the insured from collecting twice.
Subrogation across 6 exams
Subrogation appears on the following exams. Each defines it in the context candidates are tested on:
- Property & Casualty
- The insurer's right, after paying a claim, to pursue a third party responsible for the loss to recover the amount paid. It prevents the insured from collecting twice.
- Personal Lines
- The insurer's right, after paying a claim, to pursue a third party who caused the loss in order to recover the amount paid. It reinforces indemnity by ensuring the at-fault party ultimately bears the cost.
- All-Lines Adjuster
- The insurer's right, after paying a claim, to step into the insured's shoes and pursue recovery from the third party who was legally responsible for the loss.
- Health-Only Insurance
- The insurer's legal right to recover benefits it has paid by pursuing a third party responsible for the insured's loss. This prevents the insured from recovering twice for the same injury.
- Public Adjuster
- The insurer's right, after paying a claim, to pursue recovery from a third party who was legally responsible for causing the loss.
- WC Adjuster
- The insurer's right to recover benefits it paid on a claim from a negligent third party who actually caused the worker's injury. It prevents the injured worker from collecting twice for the same loss.