subrogation

Example:After repairing a client's vehicle, the insurance company initiated insurance subrogation to recover the payment from the responsible driver.

Definition:The right of an insurance company to recover money it has paid out on behalf of a policyholder from the party at fault for the loss.

Example:The insurer's subrogation rights enabled them to pursue legal action against the manufacturer who was found responsible for a defective product that caused injury.

Definition:The legal entitlement of an insurer to take over the rights and claims of a policyholder who has been wronged or has suffered a loss that is covered under the insurance policy.