subrogation Hear it!

subrogation Definition

sub·ro·ga·tion (sub′rō gā′s̸hən, -rə-)

noun

a subrogating; esp., the substitution of one creditor for another, along with a transference of the claims and rights of the old creditor

Etymology: ME subrogacioun < ML subrogatio < L subrogatus

subrogation Finance Definition
A legal process in which an insurance company pays for a loss and then seeks to recover the money from another party who is legally responsible. The responsible party may be the person who caused the damage or that person’s insurance company. The person who is owed the money assigns his or her rights to insurance benefits to the insurance company that has paid the claim.
subrogation Law Definition

n

  1. A paying of or an assumption of the debt of one person by another.
  2. The passing of rights from one party to another by virtue of the second’s assumption of a debt on behalf of the first party;
  3. In insurance, the right of an insurer to recover from a third party all amounts paid out on behalf of its insured.  
subrogation Usage Examples

Modifies a noun

  • claim: Proprietary subrogation claim for £ 100,000 to discharge mortgage: Boscawen v Bajwa.
  • right: There were potential difficulties with limitation and the defendant NHS trust also questioned the subrogation rights of the insurer.