subrogation

/,sʌbrə'geiʃn/
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subrogation

An insurance company uses subrogation to recover costs after paying a claim.

Definition
  1. Noun:
    • The substitution of one person or entity for another with respect to a legal right or claim: In law, "subrogation" specifically refers to the process where one party (often an insurer) steps into the legal shoes of another party (the insured) after settling a claim, thereby acquiring that party's rights to seek recovery from a third party responsible for the loss.
Usage
  • Subrogation is a technical legal term. It is primarily used in contexts involving insurance, surety, and finance to describe the transfer of recovery rights.
  • It is typically used as an uncountable noun (e.g., "the principle of subrogation").
Examples
  • Noun:
    • The insurance company paid for the car repairs and then exercised its right of subrogation against the at-fault driver.
    • Subrogation allows an insurer to recover the amount it paid to its policyholder from the party that caused the damage.
Advanced Usage
  • "Waiver of subrogation": A contractual provision where a party agrees to give up (waive) the right to have their insurer pursue a claim against another specified party. This is common in construction contracts and leases.
    • The lease included a waiver of subrogation clause to prevent the landlord's and tenant's insurers from suing each other after a fire.
Variants and Related Words
  • Subrogate (verb): To substitute one person or entity for another in relation to a claim or right.
    • The insurer is subrogated to the rights of the insured.
  • Subrogee (noun): The party (e.g., the insurer) who acquires the rights through subrogation.
  • Subrogor (noun): The party (e.g., the insured) whose rights are transferred via subrogation.
Synonyms
  • Substitution (in a legal/claim context).
  • Succession (to a right or claim).
Related Phrases
  • Right of subrogation: The legal right to pursue subrogation.
    • The contract clearly outlined the surety's right of subrogation.
  • Equitable subrogation: Subrogation that arises by operation of law to prevent unjust enrichment, not from a contract.
    • The court applied the doctrine of equitable subrogation to allow the lender to assume the first mortgage position.
subrogation

An insurance company uses subrogation to recover costs after paying a claim.

Noun
  1. (law) the act of substituting of one creditor for another