What is an insurance subrogation?

Insurance subrogation is a legal term used to describe the process of an insurance company recovering money they have paid out in a claim from a responsible third party. This is done to help the insurance company recoup some of the costs paid out for a claim. In Arizona, when an insurance company pays out a claim, they become legally entitled to the rights of the policyholder who originally made the claim. This means that the insurance company essentially takes the place of the policyholder when it comes to recovering the costs of the claim from the third party responsible for the damage or injury that the claim is for. The insurance company will usually use a process known as subrogation to recover the funds that they have paid out. This process involves the insurance company notifying the third party responsible for the damage, typically an individual or organization, that they are responsible for the claim and requesting immediate payment as reimbursement for the claim. If the third party does not comply, the insurance company may take legal action. Subrogation is an important part of the insurance process, as it helps insurance companies recoup the money that they have paid out to their policyholders. It also helps to ensure that policyholders do not have to bear the full brunt of any damage or injury costs associated with their claim, as some of the costs will be recovered by the insurance company.

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What is an insurance subrogation?

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